Bitcoin ETFs Experience $319 Million Withdrawal as Investors React to Economic Data

- Investors pulled $319 million out of Bitcoin ETFs as bets on price drop increased. - Short Bitcoin investment products received $4.4 million, highest since March. - BlackRock's iShares ETF saw inflows of over $219 million, bucking the trend. - Strong US economic data reduced likelihood of interest rate cut, leading to negative sentiment. - Cryptocurrencies will become more sensitive to interest rate expectations. - Solana funds experienced record outflows of $39 million, while Ethereum funds lost $5.7 million.
Summary :
Investors withdrew a total of $319 million from Bitcoin exchange-traded funds (ETFs) last week, according to a report by CoinShares. This was driven by strong economic data in the U.S., which reduced the likelihood of a 50-basis point interest rate cut. Short Bitcoin investment products received $4.4 million, the highest since March. However, BlackRock's iShares ETF saw inflows of over $219 million. CoinShares itself experienced $4 million leaving its Bitcoin funds. The report also noted that cryptocurrencies, including Bitcoin, will become increasingly sensitive to interest rate expectations. In addition, investors pulled a record amount of cash out of Solana funds, with $39 million leaving last week. European investors also cashed out of crypto funds, with Ethereum funds losing $5.7 million. The price of Bitcoin currently stands at $58,622 per coin, 20% below its all-time high in March.

Sources :

- Decrypt