- U.S. spot bitcoin ETFs saw record outflows of $563 million on Wednesday, nearing $1.2 billion over the past week.
- Fidelity’s FBTC had the highest withdrawal at $191.1 million.
- Despite Powell’s dovish stance, the ETF market outlook remained unchanged.
On Wednesday, U.S.-based spot bitcoin exchange-traded funds (ETFs) witnessed increased selling pressure, hitting a record outflow of $563 million since their inception on January 11. Data from CoinGlass revealed that 11 ETFs saw a combined net outflow of $563.7 million, continuing the decline that started on April 24. Over the past week, investors have withdrawn nearly $1.2 billion from these ETFs.
Fidelity’s FBTC saw the highest withdrawal on Wednesday, with investors pulling out $191.1 million. With FBTC among the ETFs with the most inflows in the first quarter, this development might influence investor sentiment.
Moreover, GBTC was second on Wednesday’s list of outflows, with pullouts amounting to $167.4 million. In addition, ARKB and IBIT saw outflows of $98.1 million and $36.9 million, respectively.
During the day, Federal Reserve Chairman Jerome Powell reaffirmed a “net-dovish” stance, in which the central bank prioritizes employment and economic growth over liquidity tightening. However, Powell’s viewpoints did not change the outlook of the ETF market, which continued to witness selling pressure.
Despite recent disappointing inflation figures, Powell emphasized the economy’s strength and dismissed concerns about increased rates or reduced liquidity.
The Fed specified that its rate is unchanged, between 5.25% and 5.5%. Additionally, the agency announced plans to significantly reduce its alternate liquidity tightening program, known as quantitative tightening (QT), starting in June.
Furthermore, to enhance liquidity in the bond market, the U.S. Treasury unveiled a program to repurchase billions of dollars in government debts, marking the first such initiative in over twenty years.
Bitcoin displayed sensitivity to anticipated shifts in liquidity conditions common among risk assets. Following Powell’s remarks, BTC experienced a brief uptick from $56,620 to $59,430. However, BTC is yet to regain the previous $60,00 mark, trading at $58,300, per data from Coinmarketcap.
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