Bitcoin ETFs See Record Outflows Amid Rate Hike and Crypto Legislation Uncertainty
Bitcoin ETFs have seen significant outflows in recent days, with $746.3 million leaving the funds over two trading sessions. The largest outflows were recorded on Tuesday, at $450.4 million, and Wednesday, at $295.9 million.
The withdrawals follow a Federal Reserve rate hike and the failure of the US Senate to advance the CLARITY Act. Higher interest rates can weigh on Bitcoin by increasing yields available on lower-risk investments and strengthening the dollar.
Despite the outflows, Bitcoin has shown resilience and held above $76,000. The price briefly fell towards $75,350 but recovered and climbed as high as $76,600 before settling around $76,400-$76,500.
The Fidelity ETF (FBTC) recorded a small inflow of $3.5 million, while BlackRock's iShares Bitcoin Trust (IBIT) led the withdrawals with $144.1 million leaving the fund.