Bitcoin spot exchange-traded funds (ETFs) have experienced their first net outflows in nearly a month, with a total of 11 U.S. spot Bitcoin ETFs collectively witnessing a net outflow of $64.9 million. The Grayscale Bitcoin Trust (GBTC) had the largest net outflow of $39.5 million, followed by the Invesco Galaxy Bitcoin ETF (BTCO) with $20.5 million and the Fidelity Wise Origin Bitcoin Fund (FBTC) with $3 million in outflows. Bitwise and BlackRock’s ETFs saw modest inflows of $7.6 million and $6.3 million, respectively. The outflows coincided with a decline in the price of Bitcoin, which dropped from just above $70,000 to below $68,000 over the past 12 hours.
BTC spot ETFs had been observing strong inflows in the preceding week, with approximately $1.83 billion in net inflows recorded on each trading day. The cumulative net inflow since the inception of these ETFs now stands at a record high of about $15.7 billion, reaching levels of demand not seen since early March. The integration of Bitcoin into traditional finance is expanding globally, with the recent launch of Australia’s first BTC spot ETF and approval from the Thailand Securities and Exchange Commission for Thailand’s inaugural BTC spot ETF. Central banks, including the Bank of Canada (BOC) and the European Central Bank (ECB), have recently cut interest rates by 25 basis points despite inflation levels surpassing their 2% annual target, indicating their confidence in managing inflation while implementing less restrictive monetary policies.
The decision to reduce rates despite higher-than-target inflation suggests a positive outlook on the ability to control and maintain inflation near desired levels with more expansionary monetary policies. Less restrictive monetary policies are generally favorable for risk-on assets, including stocks and digital assets like Bitcoin, particularly when rate cuts do not signal an imminent recession. The U.S. Bureau of Labor Statistics is set to release inflation figures for the Consumer Price Index (CPI) on June 11, with analysts forecasting a 0.1% rise in inflation for May, bringing the year-on-year figure to 3.4%. The Fed’s monetary policy is also to be decided at a two-day Federal Open Market Committee (FOMC) meeting starting the same day, indicating potential implications for the broader financial markets.
Overall, the Bitcoin spot ETF market saw its first net outflows in nearly a month, with specific ETFs experiencing both inflows and outflows. Despite the outflows, Bitcoin’s integration into traditional finance is expanding globally with the launch of new spot ETFs in different countries. Central banks have been cutting interest rates, signaling confidence in their ability to manage inflation while implementing less restrictive monetary policies. The upcoming inflation figures and Fed’s monetary policy decision are expected to have implications for both traditional and digital asset markets.
