EddieJayonCrypto
20 Dec 24
Bitcoin ETFs and Ethereum ETFs experienced significant outflows on Thursday, breaking positive flow streaks. Bitcoin ETF outflows reached a record $671.9 million, surpassing the previous high of $564 million. Fidelity's FBTC fund led the selling volume, with Grayscale's BTC fund and Ark Invest's ARK...
Bitcoin and Ethereum ETFs experienced significant outflows as a reaction to the remarks made by the Federal Reserve chair, resulting in the largest outflows since their launch.
Bitcoin ETF outflows reached a new peak at $671.9 million, with Fidelity's FBTC fund leading the selling volume. Grayscale's BTC fund also recorded substantial outflows, marking its worst performance since launch. Ark Invest's ARKB contributed to the total outflows as well. On the other hand, BlackRock’s IBIT fund, Franklin Templeton’s EZBC, and Valkyries’ BRRR recorded neither outflows nor inflows.
Similarly, Ethereum ETFs saw outflows of $60.5 million due to concerns over the news that the Federal Reserve is not allowed to hold BTC. This resulted in the breaking of an 18-day streak of positive flows.
The outflows were attributed to Federal Reserve chair Jerome Powell's remarks on limited interest rate cuts and ongoing US inflation, signaling Wall Street investors' reaction. This change in rhetoric came after data showed US inflation was not cooling as Federal Reserve officials had hoped, with only two interest rate cuts expected next year.