The U.S. spot bitcoin exchange-traded funds (ETFs) observed a decline in net inflows recently, with a total outflow of $43.97 million on Wednesday, interrupting a two-day streak of positive flows. According to data from SoSoValue, ARKB, the bitcoin ETF from Ark Invest and 21Shares, experienced the largest outflows, totaling $54.03 million. Additionally, Grayscale's GBTC saw net outflows of $4.59 million, while its bitcoin Mini Trust incurred around $511,230 in outflows.
Contrasting the outflows, Fidelity's FBTC led the inflow chart with $12.57 million in net inflows for the day, while Invesco's BTCO attracted $2.59 million. It's worth noting that several other funds, including BlackRock's IBIT, reported no flows. Notably, IBIT has not seen any net inflows since August 26.
Strong Trading Activity Despite Outflows
Despite the overall outflows in bitcoin ETFs, trading activity remained robust. On Tuesday, these funds collectively recorded a trading volume of $1.27 billion, a substantial increase from the previous day's volume of $712.25 million. Since their launch in January, these funds have accumulated a net inflow of $17 billion.
In the ethereum space, U.S. spot Ether ETFs reported net outflows of approximately $542,870, with seven out of nine funds showing no daily flows. While VanEck's ETHV saw outflows of $1.71 million, Fidelity's FETH saw inflows of $1.17 million.
Daily trading volume for Ether ETFs reached $126.22 million on Wednesday, up from $102.87 million the day before. However, the total net outflows for Ether ETFs now stand at $562.06 million.
The broader market showcased bitcoin's price surge of 3.37% over the past 24 hours, hitting $58,318, while Ether saw a 1.78% gain, trading at around $2,373. Analysts attribute the outflows to strong U.S. economic data, including the recent consumer price index report, which indicated a 0.2% price increase in August.
Investors are closely monitoring the upcoming Federal Open Market Committee meeting, anticipating a 25 basis point rate cut. If implemented, how might these rate cuts impact the crypto market?
crypto-market">Rate Cuts' Potential Impact on the crypto Market
According to Ryan Lee, Chief Analyst at Bitget Research, a Federal Reserve rate cut, whether 25 or 50 basis points, could positively influence the cryptocurrency market. Lee suggests that a 25-basis point rate cut signals moderate economic concerns and may prompt a gradual rise in crypto prices as investors seek higher returns beyond traditional markets.
Lee anticipates a mild rebound with limited volatility, stating, "Investors may gradually shift funds from low-yield traditional assets to riskier ones, leading to a moderate market upturn." On the contrary, a 50-basis point cut indicates deeper economic worries and could trigger significant capital inflows into cryptocurrencies, particularly bitcoin, as investors pivot towards risk assets.
This scenario could fuel a stronger market rally but also heightened volatility. Lee predicts, "In the short term, the crypto market may experience sharp price fluctuations as investor sentiment fluctuates, especially during the initial phase as the market digests the positive news."
In the long run, Lee believes that either rate cut would reinforce expectations of sustained Federal Reserve easing, nurturing demand for cryptocurrencies.
