Important takeaways
- US Bitcoin ETFs experienced historic outflows with investors withdrawing $672 million in one day.
- Fidelity’s Bitcoin Fund led the outflows, followed by Grayscale and ARK Invest ETFs.
US spot Bitcoin ETFs suffered their biggest one-day outflow ever amid a sharp sell-off in the crypto market after the FOMC meeting. According to Farside Investors dataabout $672 million left those funds on Thursday, ending a period of net inflows that began in late November.
The massive withdrawal eclipsed the previous record of nearly $564 million set in May 1, when the group of spot Bitcoin ETFs saw nearly $564 million in withdrawals after Bitcoin fell 10% to $60,000 in a week.
Fidelity’s Bitcoin Fund (FBTC) led the exodus with $208.5 million in outflows, while Grayscale’s Bitcoin Mini Trust (BTC) hit its lowest point since launch with over $188 million in net outflows.
ARK Invest’s Bitcoin ETF ( ARKB ) and Grayscale’s Bitcoin Trust ( GBTC ) also saw massive withdrawals, with ARKB losing $108 million and GBTC losing nearly $88 million. Meanwhile, three competing ETFs managed by Bitwise, Invesco and Valkyrie lost a combined $80 million.
BlackRock’s iShares Bitcoin Trust (IBIT), which recorded $1.9 billion in net inflows this week and was a major contributor to the group’s recent strong performance, recorded zero flows for the day.
WisdomTree’s Bitcoin Fund (BTCW) was the only winner, attracting $2 million in new investment.
Bitcoin’s price fell below $96,000 during the market downturn and is currently trading at around $97,000, down 4% in 24 hours, according to CoinGecko data. Steep decline across all assets sparked $1 billion in leveraged liquidations on Thursday, Crypto Briefing reported.
The market turmoil followed the Fed’s hawkish announcements after the rate cut decision. The Fed cut interest rates by 25 basis points on Wednesday but indicated fewer cuts in 2025.
Although price volatility remains, crypto fear and greed Index still indicates greed at 74, down just one point from yesterday.
