Bitcoin ETFs faced a $200 million outflow as U.S.-listed spot bitcoin exchange-traded funds saw significant withdrawals for the second day in a row. Traders are taking a cautious approach ahead of important macroeconomic reports.
According to data from SoSoValue, eleven ETFs experienced a net outflow of $200 million on Tuesday, marking the highest outflow since May 1 when $580 million was withdrawn. This occurred as Bitcoin underwent a sell-off, briefly dropping to $66,200 before rebounding.
Grayscale’s GBTC was the main contributor to the outflows, with $120 million leaving the fund. Since its launch in January, GBTC has been the worst-performing ETF, with a total of $18 billion in outflows.
Other ETFs such as ARKB by Ark Invest, BITB by Bitwise, FBTC by Fidelity, and HODL by VanEck also saw notable outflows ranging from $7 million to $56 million. None of these funds experienced any inflows during this period.
The outflows are likely a result of traders reducing risk ahead of the U.S. Consumer Price Index (CPI) reading and the Federal Open Market Committee (FOMC) meeting scheduled for later today. These events have created a sense of caution in the market, as noted by Singapore-based QCP Capital.
The Federal Reserve is expected to maintain the current interest rate of 5.50%, with a 99.4% probability of no change. However, a Reuters poll of economists suggests that the Fed may cut rates twice this year, possibly starting in September.
Market sentiment is further impacted by Treasury Secretary Janet Yellen’s upcoming speech on Friday, which is anticipated to influence riskier assets like cryptocurrencies. Yellen’s previous remarks have had significant effects on the market, adding to the cautious atmosphere among traders.
