Spot Bitcoin ETF Performance
Wednesday saw significant outflows from U.S.-listed spot Bitcoin exchange-traded funds, totaling $470 million. This figure represents the largest single-day withdrawal observed in the past two weeks. Fidelity's FBTC was the leading fund in this outflow, with $164 million in redemptions. Data compiled by Farside Investors indicates that ARK Invest's ARKB recorded $143 million in outflows during the same session. BlackRock's IBIT experienced $88 million in outflows, while Grayscale's GBTC saw $65 million in withdrawals. Bitwise's BITB posted a smaller loss of $6 million.
These outflows marked a reversal from the positive momentum earlier in the week. Monday had registered $149 million in inflows, followed by over $202 million entering the funds on Tuesday. As a result of Wednesday's exits, cumulative net inflows across all spot Bitcoin ETFs have decreased to $61 billion.
The total assets under management for these ETFs have fallen to $149 billion. This represents 6.75% of Bitcoin's overall market capitalization, according to SoSoValue. The outflows occurred while Bitcoin's price fluctuated between $108,201 and $113,567 over a 24-hour period, briefly dipping to $108,000 before recovering.
Market Influences and Investor Sentiment
Despite the Federal Reserve's decision to cut interest rates by 25 basis points on Wednesday, Bitcoin's price experienced a decline. The cryptocurrency had previously gained momentum following a meeting between President Donald Trump and Chinese President Xi Jinping, where trade tensions between their nations were discussed.
Even with Wednesday's negative flows, ETFs continue to hold substantial Bitcoin reserves. Collectively, these investment vehicles manage over 1.5 million Bitcoin, valued at $169 billion. This holdings represent 7.3% of the total Bitcoin supply, according to data from Bitbo. BlackRock's IBIT leads in holdings with 805,239 Bitcoin. Fidelity's ETF follows in second place with 206,258 Bitcoin, and Grayscale's GBTC ranks third with 172,122 Bitcoin.
Analysts have previously identified correlations between ETF flows and Bitcoin's price movements. A rally observed in early October was attributed, in part, to substantial inflows into these investment vehicles, highlighting their influence on broader market dynamics.
Future Outlook
Michael Saylor, chairman of Strategy, recently presented a bullish outlook, forecasting that Bitcoin could reach $150,000 by the end of 2025. He expressed a lack of concern regarding short-term price volatility, citing positive developments within the digital asset space as supportive of his projection.
The cryptocurrency's recovery from its session lows suggests that market participants may have viewed the diplomatic engagement between Trump and Xi as potentially beneficial for risk assets. However, the significant ETF outflows indicate that institutional investors are maintaining a cautious stance amidst ongoing macroeconomic uncertainties and the Federal Reserve's policy decisions.