In a significant development for the cryptocurrency market, investors withdrew substantial amounts from U.S.-listed spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) on Wednesday. This trend reflects growing macroeconomic uncertainties that are casting a shadow over the price prospects for these digital assets.
According to data from SoSoValue, eleven Bitcoin ETFs experienced a combined net outflow of $582 million, marking the second-largest total since these alternative investment vehicles began trading a year ago. This outflow is significant, coming in just shy of the record withdrawal of $680 million recorded on December 19.
Among the major players affected, Fidelity’s FBTC led the outflows with a remarkable loss of $258 million, while BlackRock’s IBIT followed closely behind, experiencing a withdrawal of $124 million.
Ether ETFs are not exempt from this trend either, with a reported outflow of $159.3 million—the largest since July 26, when these public funds processed a total of $162 million in withdrawals.
These substantial outflows correlate with renewed fears surrounding U.S. inflation, which have led to increased bond market volatility and declining values of risk assets. Over the past three days, Bitcoin’s price has seen a sharp decline of nearly 8.5%, further underscoring the ongoing struggle to maintain momentum above the crucial $100,000 threshold.
Recent minutes from the Federal Reserve’s December 18 meeting, released on Wednesday, indicated that officials believe the central bank is approaching a point that necessitates a slowdown in the policy-easing pace. Additionally, the notes revealed concerns about the inflationary effects of incoming President Donald Trump’s policies.
Despite these challenges, some analysts are cautiously optimistic, speculating a potential upswing following the release of Friday’s nonfarm payrolls report. Valentin Fournier, an analyst at BRN, noted in an email, “The U.S. employment report on Friday is highly anticipated by investors, as it will provide critical insights into the health of the U.S. economy. We expect limited volatility heading into the weekend and recommend maintaining a heavy exposure to digital assets, with a preference for Bitcoin over Ethereum.”
