CandleFocus

Bitcoin ETF outflows surge 340%, Fidelity’s FBTC leads

Author: Content Editor
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. experienced a significant increase in outflows on Feb. 12 due to expectations of a more hawkish Federal Reserve stance on interest rate cuts. Data from SoSoValue showed that 12 spot Bitcoin ETFs recorded $251.03 million in outflows, a 342% jump from the previous day. Fidelity's FBTC had the highest outflows for the third consecutive day, followed by ARK and 21Shares' ARKB. However, Grayscale's mini Bitcoin Trust saw inflows of $16.34 million. Meanwhile, nine Ether ETFs also experienced outflows, with $40.95 million in redemptions. The outflows coincided with a decline in Bitcoin and Ethereum prices following higher-than-expected U.S. inflation data. Traders are now anticipating only one rate cut in 2025, and the crypto market suffered as digital assets generally perform better in lower interest-rate environments. However, some experts believe that if the Fed cuts rates later this year, it could unleash a flood of liquidity and lead to a major rally in the crypto market, particularly in Bitcoin, potentially pushing it to new all-time highs.

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