Bitcoin ETFs see $680 million outflows as the price drops below $96K
The downturn coincides with the Federal Reserve’s cautious stance on future interest rate cuts, despite a recent 0.25% reduction.
Spot Bitcoin ETFs in the US faced $680 million in outflows on 19 December, following Bitcoin’s fall below $96,000. This marks the end of a 15-day inflow streak that had brought over $6.7 billion into funds. Fidelity’s FBTC led the outflows, with Grayscale and ARK 21Shares also seeing significant withdrawals. However, WisdomTree’s BTCW recorded modest inflows, standing out as an exception on an otherwise difficult day for the market.
The broader cryptocurrency market struggled as the Federal Reserve announced a cautious stance on future rate cuts, despite implementing a 0.25% reduction. Bitcoin fell to $96,751, a 4.4% decline, whilst trading volumes in Bitcoin ETFs surged to $6.31 billion. The Fed’s hawkish tone, projecting only two additional cuts by 2025 alongside delayed inflation targets, has dampened investor sentiment.
Ethereum ETFs mirrored Bitcoin’s trend, recording $60 million in outflows. Grayscale’s ETHE led these withdrawals, although Fidelity and VanEck managed small inflows. Despite the day’s challenges, Ethereum ETFs still hold a positive net inflow of $2.4 billion. Ethereum’s price dropped 8.1%, landing at $3,378 as the market absorbed the Federal Reserve’s cautious outlook.
