Bitcoin spot exchange-traded funds (ETFs) have encountered their first instance of net outflows in nearly a month.
As reported by Farside Investors, a collective total of 11 U.S. Bitcoin spot ETFs observed a net outflow amounting to $64.9 million. This shift follows a notable streak of 19 consecutive days marked by net inflows.
Among these Bitcoin spot ETFs, the Grayscale Bitcoin Trust (GBTC) notably recorded the largest net outflow, tallying at $39.5 million.
Following closely was the Invesco Galaxy Bitcoin ETF (BTCO), experiencing net outflows totaling $20.5 million.
Additionally, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw a minor outflow of $3 million.
Conversely, Bitwise and BlackRock’s ETFs noted modest inflows, amounting to $7.6 million and $6.3 million, respectively.
Bitcoin Price Drops After ETF Outflows
The ETF outflows coincided with a downturn in Bitcoin’s price.
Over the last 12 hours, Bitcoin’s value dipped from slightly above $70,000 to below $68,000. This decline triggered $170 million in liquidations and put downward pressure on the entire cryptocurrency market.
In the previous week, BTC spot ETFs consistently saw robust inflows, with net inflows recorded every trading day.
For the week, the total net inflow amounted to roughly $1.83 billion, reaching demand levels not witnessed since early March, according to Matteo Greco, a research analyst at digital asset investment firm Fineqia International.
The cumulative net inflow since the inception of these ETFs has now soared to a record high of approximately $15.7 billion.
The global integration of Bitcoin into traditional finance is expanding.
Following the debut of Australia’s first BTC spot ETF, the Thailand Securities and Exchange Commission (SEC) recently greenlit One Asset Management to introduce Thailand’s inaugural BTC spot ETF.
Central Banks Cut Rate
On the macroeconomic front, both the Bank of Canada (BOC) and the European Central Bank (ECB) have implemented 25 basis point interest rate cuts.
Despite inflation levels surpassing the central banks’ 2% annual target, these rate reductions signal governments’ confidence in their ability to manage inflation while adopting less restrictive monetary policies.
Typically, less restrictive monetary policies bode well for risk-on assets like stocks and digital assets such as Bitcoin, particularly when rate cuts don’t indicate an imminent recession.
In this scenario, the central banks’ choice to lower rates despite higher-than-target inflation reflects their assurance in controlling and maintaining inflation close to desired levels, even with more expansionary monetary measures.
Meanwhile, the U.S. Bureau of Labor Statistics is scheduled to unveil May’s figures for its inflation-tracking Consumer Price Index (CPI) on June 11.
Analysts predict a 0.1% inflation increase following April’s 0.5% uptick, bringing the year-on-year figure to 3.4%, with core inflation projected to rise by 0.3% in May, matching April’s figure, as reported by Morningstar.
The Federal Reserve’s monetary policy is also up for decision during a two-day Federal Open Market Committee (FOMC) meeting commencing on the same day.
