Exchange-traded funds (ETFs) that hold Bitcoin (BTC) have lost funds in the United States for the second day. This is a big change for the cryptocurrency market. Before the Federal Open Market Committee (FOMC) meeting and the much-anticipated U.S. inflation data, which comes out on Wednesday, this trend starts to show.
A report from Farside Investors shows that on June 11, $200.4 million left U.S. Bitcoin exchange-traded funds (ETFs). These fund moves were mostly caused by the Grayscale Bitcoin Trust (GTBC) and the ARK 21Shares Bitcoin ETF (ARKB), which lost $121 million and $56.5 million, respectively.
Farside Investors says that with these recent withdrawals, the GTBC spot Bitcoin ETF has lost more than $18 billion in net assets. The Bitwise Bitcoin ETF (BITB), the Fidelity Wise Origin Bitcoin Fund (FBTC), and the VanEck Bitcoin Trust (HODL) all lost a lot of funds. BITB lost $11.7 million, FBTC lost $7.4 million, and HODL lost $3.8 million.
BTC Market Awaits Crucial Inflation Report Amidst Volatility
On the other hand, BlackRock’s iShares Bitcoin Trust (IBIT) stayed stable and did not lose any money during this time.
This change comes after spot Bitcoin ETFs saw their first day of net outflows on June 10, after four weeks of steady inflows that hit $64.9 million. At the same time, Bitcoin briefly fell to $66,000 as buyers tried to protect themselves from market volatility.
Max on X, a crypto trader and analyst, commented on this trend by saying, “We’ve seen this before.” He talked about the similar downward momentum before the U.S. Consumer Price Index (CPI) data came out.
The U.S. inflation report, due out today at 12:30 UTC, is very important for the market. People often think a drop in the U.S. inflation rate is a good sign for the bitcoin market. A post by Santiment on X says that experts think inflation will rise 3.4% from May 2023 to May 2024 compared to last year.
As the market waits for the next inflation report, all eyes are still on what the Federal Reserve does and how it might affect the wider financial world, including the wild cryptocurrency market.
