Ten US spot-Bitcoin exchange-traded funds recently experienced their most significant three-day outflow since their launch in January. This marks a reversal from the previous fervor for exposure, which had propelled the token to an all-time high.
Between Monday and Wednesday, a total of $742 million exited the ETFs, reflecting withdrawals from the Grayscale Bitcoin Trust and a slowdown in subscriptions for competing offerings from companies like BlackRock Inc. and Fidelity Investments.
Despite this recent outflow, the funds have still attracted a net inflow of $11.4 billion overall, according to Bloomberg data, making it one of the most successful ETF launches to date. However, the Grayscale Bitcoin Trust, which transitioned into an ETF, has experienced outflows totaling $13.3 billion.
On Wednesday, Bitcoin surged over 5% in the US following signals from the Federal Reserve indicating potential interest-rate cuts, which bolstered various asset classes. However, this rally in the cryptocurrency faded in Asia on Thursday, contrasting with continued gains in global stocks and gold, as market sentiment was influenced by the ETF flow data.
Following the Fed’s decision, cryptocurrency regained some momentum, but according to Chris Weston, head of research for Pepperstone Group, further efforts are needed to sustain this momentum.
As of 9:26 a.m. in New York, Bitcoin was trading at $67,504, approximately $6,300 below its all-time high reached on March 14 amid optimism surrounding ETFs and anticipation of a reduction in the token’s supply growth.
