Bitcoin ETFs Bleed $463M Ahead of Fed Meeting
US Bitcoin exchange-traded funds (ETFs) suffered their first weekly loss since mid-August, with $462.7 million in outflows over four trading sessions.
The funds recorded withdrawals of $46.7 million on Tuesday, followed by $120.2 million on Wednesday and $282.6 million on Thursday before easing to $13.3 million on Friday.
This reversal is modest compared to the preceding demand, which saw investors pour in roughly $3.8 billion over the previous three weeks as Bitcoin rallied briefly above $80,000.
The concern is not just about the immediate loss but what happens if this trend persists. Spot ETFs have supplied significant marginal demand during Bitcoin's recovery, meaning sustained redemptions would remove some of the buying pressure that helped the cryptocurrency establish its latest trading range.
The Federal Reserve meeting on September 15-16 adds to the uncertainty. Higher yields complicate one of the investment arguments supporting Bitcoin this year, and Ecoinometrics notes the debasement narrative can only offset tighter financial conditions for so long while interest rates continue climbing.