Bitcoin funds are undergoing a makeover as US ETFs announce their first withdrawals in nearly three weeks.
US spot bitcoin exchange-traded funds (ETFs) have seen their first outflows after 19 days of inflows, according to data from HODL15Capital.
On Monday, ETFs saw withdrawals of more than $71 million; the Grayscale Bitcoin Trust (GBTC) reported withdrawals of nearly $40 million.
The Bitwise Bitcoin ETF (BITB) saw net inflows of about $8 million. The iShares Bitcoin Trust (IBIT), managed by BlackRock, saw inflows of about $6 million.
Meanwhile, $3 million was withdrawn from the Fidelity Wise Origin Bitcoin Fund (FBTC). A staggering $20.5 million has been withdrawn from the Invesco Galaxy Bitcoin ETF (BTCO). The Valkyrie Bitcoin Fund (BRRR) revealed withdrawals of nearly $16 million.
During the trading day, no inflows or outflows were recorded from the ARK 21Shares Bitcoin ETF (ARKB). This also applies to WisdomTree Physical Bitcoin (BTCW), VanEck Bitcoin Trust (HODL), and Franklin Templeton Bitcoin ETF (EZBC).
U.S. bitcoin funds are buying heavily; in the first week of June alone, they accumulated nearly 25,700 BTC. With over 304,000 BTC under management, IBIT remains the largest bitcoin ETF worldwide. GBTC is in second place with over 284,000 BTC, valued at $19.7 billion.
Monday’s ETF flows could be influenced by US economic sentiment and expectations about the Federal Reserve’s (Fed) monetary policy.
On Wednesday, June 12, the Federal Open Market Committee (FOMC) will convene and the Consumer Price Index (CPI) will be released, which will be closely watched. Core CPI is expected to be 3.5%, while CPI inflation is forecast at 3.4%.
Investors keep a close eye on the Fed’s decision regarding interest rates. According to the CME FedWatch tool, the market is likely to anticipate that the Fed will keep rates between 525 and 550 basis points.
Bitcoin price volatility could potentially be influenced by upcoming economic developments. As reported by Crypto Briefing, Bitcoin perpetual futures markets have seen high funding rates. This suggests that long positions are overvalued, and spot prices could correct following the FOMC meeting.
Data from CoinGecko shows that the price of Bitcoin was around $68,036 at press time, down by around 2.10% compared to the previous day.
