US spot Bitcoin exchange-traded funds (ETFs) recorded another heavy day of withdrawals on Wednesday as investors digested a Federal Reserve rate hike and continued uncertainty surrounding US
US spot Bitcoin exchange-traded funds (ETFs) recorded another heavy day of withdrawals on Wednesday as investors digested a Federal Reserve rate hike and continued uncertainty surrounding US crypto legislation.
The funds posted $295.9 million in net outflows on Sept. 16, according to Farside Investors. BlackRock’s iShares Bitcoin Trust (IBIT) led the withdrawals with $144.1 million leaving the fund, while ARK 21Shares Bitcoin ETF (ARKB) lost $84.4 million and Fidelity’s FBTC recorded $52.7 million in redemptions. Grayscale’s GBTC also shed $18.2 million.
Morgan Stanley’s MSBT was the only fund to attract fresh capital, and recorded a relatively small $3.5 million inflow.
Bitcoin ETF flows (Source: Farside Investors)
Wednesday’s withdrawals followed an even larger $450.4 million outflow on Tuesday, which takes the combined net redemptions over the past two trading sessions to $746.3 million. Despite the recent selling, US spot Bitcoin ETFs have still accumulated approximately $54.64 billion in net inflows since their launch.
Bitcoin Holds Above $76,000 Despite ETF SellingBitcoin has shown some resilience despite the continued ETF outflows. BTC traded near $75,850 at the beginning of the latest 24-hour session before briefly falling toward $75,350. It subsequently recovered and climbed as high as roughly $76,600 before settling around $76,400-$76,500.
BTC’s price action over the past 24 hours (Source: CoinCodex)
The recovery comes despite a tougher macroeconomic backdrop. The Federal Reserve raised interest rates by 25 basis points on Wednesday, taking its target range to 3.75%-4.00% in its first rate increase since 2023. Policymakers also indicated that another increase could come before the end of the year.
Higher interest rates can weigh on Bitcoin and other risk assets by increasing yields available on lower-risk investments and strengthening the dollar.
Crypto markets are also still absorbing the US Senate’s failure to advance the CLARITY Act in a 49-50 procedural vote. The legislation needed 60 votes to advance.
Bitcoin’s ability to recover toward $76,500 while almost $750 million exits spot ETFs over two sessions suggests the immediate selling pressure is being absorbed, but ETF flows, interest-rate expectations and US crypto legislation are likely to be important market drivers.
