ETFs
200 million dollars evaporate from Bitcoin ETFs! Here’s why?
Wed June 12, 2024 ▪ 3 min read ▪ by Eddy S.
Bitcoin ETFs saw significant net outflows of over $200 million! As uncertainty surrounding US inflation data has gripped the market. Investors are reassessing their positions in risky assets, including Bitcoin ETFs, as inflation fears rise.
American inflation: fear causes Bitcoin ETFs to hemorrhage!
Daily net outflows of $200.31 million were recorded by US Bitcoin spot ETFs on June 11! The Grayscale Bitcoin Trust (GBTC) and the ARK 21Shares Bitcoin ETF (ARKB) are the worst hit, with outflows of $121 million and $56 million respectively. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) saw no inflows during the same period.
This trend is notable because these ETFs have experienced a positive net collection since May 13. However, capital outflows began to occur from June 10, as market participants anticipated the release of US Consumer Price Index (CPI) data for May.
Upcoming Inflation Outlook
Global market analyst Jesse Cohen noted the increased market volatility surrounding the upcoming CPI report. He said a colder-than-expected CPI report could extend the market’s ongoing rally. However: “Surprisingly high inflation could trigger volatility in markets, as it could delay expectations of rate cuts and raise concerns about inflationary pressures,” he added.
Research firm The Kobeissi Letter noted mixed expectations regarding the CPI data. It highlights that if the big banks expect CPI inflation to be 3.4%, the predictive markets indicate a 17% probability that inflation will be above 3.4% and a 41% probability in below 3.4%.
In conclusion, net outflows from spot Bitcoin ETFs reflect the global level economic uncertainty. Upcoming inflation data could influence market trends, highlighting the importance of investor vigilance over fluctuating economic indicators.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.