Bitcoin ETFs saw daily outflows of USD $200 million – DiarioBitcoin
By Hannah Perez
Bitcoin spot ETFs had their worst session in more than a month amid the wait for two key economic indicators: the inflation report and the US interest rate announcement.
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- US Bitcoin Spot ETFs Have Their Worst Session Since May
- None registered entries and they recorded joint exits of USD $200.4 million on Tuesday
- The results were seen amid a Bitcoin crash and the anticipation of key reports
- May inflation report and FED meeting expected today
Exchange-traded funds (ETFs) Bitcoin Spot markets recorded their worst day since early May on Tuesday in anticipation of announcements of key economic indicators in the United States.
The 11 ETFs of Bitcoin spot trading in the US. They closed yesterday’s session with net outflows of USD $200.4 million, their worst capital flow since May 1when the group faced a daily leak of more than $550 million, data from SoSoValue.
The day was notable as none of the ETFs recorded net capital inflows and five ended with negative flows. IBIT of BlackRock was among the funds that saw $0 inflows on Tuesday, along with BTCO I invest and Digital Galaxy, EZBC Franklin TempletonBRRR of ValkyrieBTCW of WisdomTree and DEFI of Hashdex.
The rest of the ETFs faced million-dollar outflows of between three and one figure, starting with GBTC of Grayscale which closed the day with a loss worth USD $121 million. It was followed by ARKB of Ark Invest and 21Shares, which also had a negative session for USD $56.5 million. BITB of BitwiseFBTC Fidelity and HODL of VanEckalso recorded departures of USD $11.7 million, USD $7.4 million and USD $3.8 million, respectively.
The negative result came after another day of daily net outflows of USD $64.9 million on Monday, which ended a streak of continuous inflows that had stretched for 18 consecutive sessions, marking a record for the type of product. Bitcoin ETFs in the US have accumulated inflows of USD $15.4 billion since January.
Waiting for the inflation report and FED meeting
The recent evolution in the price of Bitcoin possibly had an impact on ETF flows.
Bitcoin (BTC) slid noticeably in price on Tuesday, when it momentarily fell to the USD $66,100 area after having been above USD $70,000 the previous day. It has since seen a modest recovery, trading around USD$67,800 at the time of writing.
The bearish performance for both Bitcoin as ETFs based on that cryptocurrency emerged in the midst of waiting for two key economic announcements in the US: the inflation report and the Federal Reserve’s decision on interest rates. Both announcements are expected this Wednesday and could be decisive for the market’s price trajectory.
Investors are waiting for the US central bank to announce a long-awaited cut in benchmark rates, an easing measure that would ease pressure on markets. However, estimates of a persistent inflation reading for May have dampened hopes of a cut.
Last week, the European Central Bank announced its first cut in benchmark rates since 2019. The news followed similar announcements by the central banks of Canada, Switzerland and Sweden, raising hopes that the Federal Reserve of the US (FED) could be next.
U.S. central bank officials have kept benchmark rates unchanged for six straight terms, and have hinted that they expect inflation to fall closer to their 2% target before cutting.
Market participants are anxiously awaiting comments from the FED, although most do not expect any change in interest rates. He 99.4% of investors predict that the interest rate will remain at the current level of 525-550 basis points, according to the tool CME FedWatch.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
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