On Wednesday, U.S.-listed bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) saw a significant outflow of funds as rising macroeconomic concerns dampened investor sentiment toward cryptocurrencies.
A total of $582 million was withdrawn from 11 bitcoin ETFs, marking the second-largest outflow since these funds were launched a year ago, according to SoSoValue data. The withdrawal was just shy of the record outflow of $680 million recorded on December 19. Leading the outflows was Fidelity’s FBTC, with a loss of $258 million, followed by BlackRock’s IBIT, which saw a $124 million outflow.
Ether ETFs also faced significant withdrawals, with $159.3 million leaving these funds. This represents the largest outflow since July 26, when ether ETFs saw $162 million in withdrawals.
The withdrawals coincide with renewed inflation concerns in the U.S., which have contributed to increased volatility in the bond market and pressured risk assets. Bitcoin’s price dropped nearly 8.5% over the last three days, signaling continued difficulty in maintaining momentum above the $100,000 level.
Minutes from the Federal Reserve’s December meeting, released on Wednesday, highlighted that officials believed the pace of easing might soon slow and voiced concerns about inflation, especially in light of the incoming Trump administration’s policies.
However, some analysts remain optimistic. They are particularly looking ahead to Friday’s U.S. nonfarm payrolls report, which could provide further clues about the economy’s trajectory.
“The nonfarm payrolls report on Friday is a key focus for investors, as it will offer critical insights into the health of the U.S. economy,” said Valentin Fournier, analyst at BRN. “We anticipate limited volatility heading into the weekend and recommend maintaining a strong position in digital assets, especially Bitcoin over Ethereum.”
