Investors withdrew substantial amounts from US-listed bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) on Wednesday, as macroeconomic uncertainties cloud the price outlook for cryptocurrencies.
Eleven bitcoin ETFs recorded a combined net outflow of $582 million, marking the second-largest total since these alternative investment vehicles began trading a year ago, according to data from SoSoValue. The big outflow is below the record withdrawal of $680 million on December 19.
Fidelity’s FBTC led the outflows, losing a record $258 million, while BlackRock’s IBIT lost $124 million.
Ether ETFs lost $159.3 million, the most since July 26, when these public funds processed withdrawals worth $162 million.
These large capital outflows coincide with renewed inflation fears in the United States, which have fueled bond market volatility, driving down risk assets. Over the past three days, the price of bitcoin has plunged nearly 8.5%, marking another bullish failure to establish a foothold above the $100,000 mark.
Minutes from the Federal Reserve’s Dec. 18 meeting released Wednesday showed officials believed the central bank was approaching the point that required a slowdown in the pace of policy easing. The notes also revealed concerns about the inflationary impact of incoming President Donald Trump’s policies.
Still, some analysts remain optimistic and expect a further rebound following Friday’s nonfarm payrolls report.
“Friday’s US jobs report is highly anticipated by investors as it will provide critical information on the health of the US economy. We expect limited volatility heading into the weekend and recommend maintaining strong exposure to digital assets, with a preference for Bitcoin. over Ethereum,” BRN analyst Valentin Fournier said in an email.
