Bitcoin ETF Outflows Hit $200 Million Ahead Of FOMC Meeting

By: Isha Das

US spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows for the second consecutive day this week, following the end of their 19-day inflow streak on June 10. According to data from Farside, Bitcoin ETFs had cumulative outflows of $200 million on June 11, driven by withdrawals from five key issuers.

Grayscale's GBTC led the outflows with $121 million, raising its total outflows to $18.03 billion. Ark Invest's ARKB followed with nearly $57 million in net outflows. Bitwise's BITB reported approximately $12 million in outflows, while Fidelity and VanEck saw smaller net outflows of $7.4 million and $3.8 million, respectively.

Despite these substantial outflows, the funds have accumulated a total net inflow of $15.42 billion since their launch in January. These outflows contributed to a recent drop in Bitcoin's price, which fell as low as $66,207 in the past 24 hours but has since recovered to $67,449 as of press time. Crypto analyst Patrick Scott commented on the situation, stating, "Bitcoin ETFs are adding a new reflexive element to price, where off-hours dumps translate to outflows on the next trading day."

Market experts believe that Bitcoin's recent price performance and the ETF outflows indicate investor caution ahead of the crucial Federal Open Market Committee (FOMC) meeting. Notably, three US lawmakers—Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper—have urged the Federal Reserve to lower the federal funds rate from its two-decade high of 5.5%, arguing, "This sustained period of high interest rates is already slowing the economy and is failing to address the remaining key drivers of inflation." Despite this appeal, the market expects no change in interest rates, as 99.4% of investors predict the rate will remain at the current level of 525-550 bps, according to the CME FedWatch Tool.