Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a total net outflow of $43.97 million on Wednesday, ending a two-day streak of positive inflows. The largest outflows came from ARKB, the Bitcoin ETF from Ark Invest and 21Shares, with $54.03 million in net outflows. Additionally, Grayscale’s GBTC reported net outflows of $4.59 million, while its Bitcoin Mini Trust saw approximately $511,230 in outflows. On the other hand, Fidelity’s FBTC led the inflow chart with $12.57 million in net inflows for the day, with Invesco’s BTCO attracting $2.59 million. Despite the overall outflows, trading activity remained strong, with Bitcoin ETFs collectively recording a trading volume of $1.27 billion on Tuesday. Since their introduction in January, these funds have accumulated a net inflow of $17 billion.
On the Ethereum front, U.S. spot Ether ETFs also reported net outflows, totaling approximately $542,870, with seven of the nine funds showing no daily flows. VanEck’s ETHV saw net outflows of $1.71 million, while Fidelity’s FETH saw $1.17 million in inflows. Daily trading volume for Ether ETFs reached $126.22 million on Wednesday, up from $102.87 million the previous day. However, total net outflows for Ether ETFs now stand at $562.06 million. In terms of market performance, Bitcoin’s price increased by 3.37% over the past 24 hours, reaching $58,318, while Ether gained 1.78%, trading at around $2,373. Analysts attribute the outflows to strong U.S. economic data, including a rise in prices for August’s consumer price index and expectations of a rate cut at the upcoming Federal Open Market Committee meeting.
According to Ryan Lee, Chief Analyst at Bitget Research, a Federal Reserve rate cut of either 25 or 50 basis points is likely to have a positive impact on the crypto market. A 25-basis point cut signals moderate economic concerns and could lead to a gradual rise in crypto prices as investors seek higher returns outside traditional markets. This could result in a mild market upswing with limited volatility. On the other hand, a 50-basis point cut suggests deeper economic worries and could trigger significant capital inflows into cryptocurrencies, particularly Bitcoin, as investors turn to risk assets. This scenario would lead to a stronger market rally but also heightened volatility in the short term as investor sentiment swings. In the long term, either rate cut would reinforce expectations of continued Federal Reserve easing, supporting demand for cryptocurrencies.
Overall, the U.S. spot Bitcoin ETFs saw net outflows of $43.97 million on Wednesday, marking a pause in positive inflows. Despite the outflows, trading activity remained strong, with Bitcoin ETFs collectively recording a trading volume of $1.27 billion. On the Ethereum front, U.S. spot Ether ETFs also reported net outflows, totaling around $542,870. However, Fidelity’s FBTC led the inflow chart with $12.57 million in net inflows. Market analysts attribute the outflows to strong U.S. economic data and expectations of a rate cut at the upcoming Federal Open Market Committee meeting. A rate cut of either 25 or 50 basis points is expected to have a positive impact on the crypto market, potentially leading to a market upswing as investors reallocate funds to riskier assets for higher returns outside traditional markets.
