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In the days ahead of the highly anticipated US FOMC meeting, when the central bank was expected to lower the interest rates, local investors were on a shopping spree for spot Bitcoin ETFs.
However, that changed when the day arrived.
<h2 id="bitcoin-etf-outflows">Bitcoin ETF Outflows</h2>
CryptoPotato <a href="https://cryptopotato.com/this-is-how-us-based-bitcoin-ethereum-investors-are-preparing-for-the-fomc-meeting/" data-wpel-link="internal" rel="noopener noreferrer nofollow">reported</a> yesterday the impressive streak for the four trading days leading to the FOMC meeting. As mentioned, just over $500 million in net inflows entered the 11 spot Bitcoin ETFs from September 12 to September 17.
However, the landscape was different yesterday. Even though the Federal Reserve <a href="https://cryptopotato.com/federal-reserve-announces-0-5-interest-rate-cut-bitcoin-soars-above-60k/" data-wpel-link="internal" rel="noopener noreferrer nofollow">reduced</a> the key interest rates by 50 basis points, while the general expectations were for a more modest 0.25% cut, the financial vehicles saw $52.7 million in net outflows on the day.
Ark Invest’s ARKB <a href="https://farside.co.uk/bitcoin-etf-flow-all-data/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">led</a> the adverse trend with $43.4 million in net withdrawals. Grayscale’s initial and largest fund (GBTC) was next with $8.1 million, and BITB trailed behind with $3.9 million. The rest saw little to no actual flows, while Grayscale’s smaller and newer fund, BTC, notched $2.7 million in inflows.
BlackRock’s IBIT remains the largest of the bunch, with almost $21 billion in AUM. However, there has been only one day of positive flow for the past three weeks.
In contrast, Fidelity’s FBTC enjoyed a favorable streak of seven consecutive days of net inflows before yesterday’s lack of action.
<h2 id="consistency-for-ethereum-etfs">Consistency for Ethereum ETFs</h2>
While the spot Bitcoin ETFs saw more than $500 million in net inflows in the days leading to the Fed’s policy pivot, the Ethereum counterparts didn’t have the same luxury. The withdrawals stood at $15.1 million on Tuesday and $9.4 million on Monday.
Their situation <a href="https://farside.co.uk/eth/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">didn’t improve</a> much yesterday when investors pulled out $9.8 million overall from the ETH-based products. Grayscale’s ETHE was at the forefront once again, seeing $14.7 million in net outflows.
The only silver lining came from BlackRock’s EHTA, which notched $4.9 million in net inflows. ETHA is the only new financial vehicle tracking the performance of Ethereum that has surpassed the coveted $1 billion milestone since its inception a couple of months back.
Despite the negative days for the Bitcoin and Ethereum ETFs, the underlying assets’ prices skyrocketed to multi-week peaks. BTC <a href="https://cryptopotato.com/bitcoin-above-62k-us-stock-market-down-and-more-feds-rate-cut-aftermath/" data-wpel-link="internal" rel="noopener noreferrer nofollow">neared</a> $63,000 earlier today, while ETH came close to $2,450.
The post <a href="https://cryptopotato.com/net-outflows-for-bitcoin-ethereum-etfs-on-fed-rate-cut-day/" rel="noopener noreferrer nofollow">Net Outflows for Bitcoin, Ethereum ETFs on Fed Rate-Cut Day</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Net Outflows for Bitcoin, Ethereum ETFs on Fed Rate-Cut Day

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