Bitcoin ETFs See $462M Outflows Amid Fed Rate Hike Expectations

Spot Bitcoin ETFs saw significant outflows of $462.7 million from September 8 to 11, a reversal of nearly half the previous week's inflows. This shift comes as markets price in an 87% chance of a 25-basis-point rate hike at the upcoming Federal Reserve meeting on September 16.

The largest single-day outflow occurred on September 10, with ARK 21Shares' ARKB experiencing $164.3 million in redemptions. Despite this, total assets under management in spot Bitcoin ETFs remain robust, with cumulative inflows since January 2024 exceeding $55 billion.

This represents less than 1% of total AUM, but the rate hike expectations are pressuring Bitcoin prices and risk assets due to higher Treasury yields and a stronger dollar.