Bitcoin ETF outflows hit $200 million ahead of FOMC meeting Bitcoin ETF outflows hit $200 million ahead of FOMC meeting
The current uncertainty in the market is being fueled by the impending Federal Open Market Committee's (FOMC) decision on cutting interest rates.
2 min read
Updated: Jun. 12, 2024 at 11:53 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
US spot Bitcoin exchange-traded funds (ETFs) experienced a second straight day of outflows for the second day this week after ending their 19-day inflow streak on June 10.
Data from Farside shows that on June 11, Bitcoin ETFs had cumulative outflows of $200 million, with withdrawals driven by five issuers.
ETF outflows
Grayscale’s GBTC led the outflows with $121 million, raising its total outflows to $18.03 billion. Ark Invest’s ARKB followed with nearly $57 million in net outflows. Bitwise’s BITB reported approximately $12 million in outflows, while Fidelity and VanEck saw smaller net outflows of $7.4 million and $3.8 million, respectively.
Despite these significant outflows, the funds have accumulated a total net inflow of $15.42 billion since their launch in January.
These substantial outflows contributed to Bitcoin’s price drop to as low as $66,207 in the past 24 hours. Crypto analyst Patrick Scott commented:
“Bitcoin ETFs are adding a new reflexive element to price, where off-hours dumps translate to outflows on the next trading day.”
Bitcoin has since recovered to $67,449 as of press time.
FOMC ahead
Market experts believe that BTC’s recent price performance and the ETF outflows indicate investors’ caution ahead of the crucial Federal Open Market Committee (FOMC) meeting.
Notably, three US lawmakers—Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper—have urged the Federal Reserve to lower the federal funds rate from its two-decade high of 5.5%. They argued:
“This sustained period of high interest rates is already slowing the economy and is failing to address the remaining key drivers of inflation.”
Despite this, the market expects no change in interest rates. According to the CME FedWatch Tool, 99.4% of investors predict the rate will stay at the current level of 525-550 bps.
Mentioned in this article
Bitcoin 
BlackRock 
Grayscale Investments 
Ark Invest 
VanEck 
Grayscale Bitcoin Trust 
ARK 21Shares Bitcoin ETF iShares Bitcoin Trust 
Fidelity Wise Origin Bitcoin Trust 
Elizabeth Warren Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Ark Invest
ARK Investment Management LLC (ARK Invest) holds a precision lens on thematic investing.
VanEck
VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
The ARK 21Shares Bitcoin ETF (ARKB) is a digital asset ETF that seeks to track the performance of bitcoin, as measured by the performance of the CME CF Bitcoin Reference Rate – New York Variant (the “Index”).
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.
Elizabeth Warren is an American politician and former academic known for being fiercely anti-Bitcoin and anti-crypto.
