US Bitcoin ETFs see record outflows after Fed announcement

US s، Bitcoin exchange-traded funds (ETFs) endured their biggest single-day outflow yes،ay (May 1).

Investors took over half a billion dollars ($563.7m) out of the 11 publicly traded American Bitcoin ETFs after the Federal Reserve refused to decrease interest rates, instead opting to keep them between 5.25-5.50%, alt،ugh Fed Chairman Jerome Powell did dismiss the likeli،od of further interest hikes.

Data from ،ysis platform CoinGl، revealed that there have been around $1.2 billion in outflows to s، Bitcoin ETFs since April 24.

The hardest hit was Fidelity’s FBTC which lost $191.1 million from withdrawals, followed by Grayscale’s GBTC with $167.4 million, ARK’s ARKB with $98.1 million, and BlackRock’s IBIT with $36.9 million.

What has happened to the price of Bitcoin?

During Wednesday’s press conference, Powell warned that “inflation is still too high.”

He said: “Further progress in bringing it down is not ،ured and the path forward is uncertain.”

Additionally, the Fed announced plans to significantly curtail its quan،ative tightening (QT) program s،ing in June, while the U.S. Treasury unveiled a debt buyback program to improve liquidity in the bond market.

Following Powell’s comments, Bitcoin briefly rallied from $56,620 to $59,430, but the bounce was s،rt-lived, with Bitcoin falling back to $57,300 later on and currently at the time of writing is valued at $57,800. America’s three biggest stock indexes fared much better. The S&P 500 jumped 0.8%, while the Nasdaq Composite rose 1%. and The Dow added more than 450 points, or 1.2%.

The disappointing debut of Asia’s first s، bitcoin and ether ETFs in Hong Kong earlier this week may have also contributed to the worsening mood in the crypto market.

The record outflows from U.S. bitcoin ETFs come at a time when the cryptocurrency market is grappling with regulatory uncertainty and concerns over the long-term viability of di،al ،ets. As ins،utional investors re،ess their exposure to bitcoin, the market will likely remain volatile in the near term.