$363M Bitcoin ETF Exodus: Fidelity Leads Sell-Off Ahead of Fed Test
Farside Investors says that Bitcoin ETFs had their biggest one-day withdrawal this month, with $363.1 million leaving the funds.
Quick overview
- Bitcoin ETFs experienced a significant outflow of $363 million, primarily driven by uncertainty surrounding the Fed's interest rate policies.
- Fidelity's FBTC led the withdrawals with $276.7 million, followed by Ark 21Shares' ARKB and Grayscale's GBTC.
- The market's nervousness is heightened by concerns over inflation and upcoming comments from Fed Chair Powell, impacting investor sentiment.
- Analysts suggest that the outflows reflect short-term positioning changes rather than long-term market pessimism, with Friday's inflation report being a key upcoming event.
Bitcoin ETFs lost $363 million, with Fidelity’s FBTC leading the way. This happened because of uncertainty about the Fed’s interest rate cuts, inflation threats, and Powell’s imminent speech, which made the market more nervous and put pressure on Bitcoin near the $111,000 support level.
Farside Investors says that Bitcoin ETFs had their biggest one-day withdrawal this month, with $363.1 million leaving the funds. Fidelity’s FBTC led the way with $276.7 million in redemptions, followed by Ark 21Shares’ ARKB ($52.3 million) and Grayscale’s GBTC ($24.6 million). Total ETF assets under management slipped below $150 billion, which is a big difference from the $3 billion that came in during the last seven days. Ether ETFs also lost $76 million, with Fidelity’s FETH accounting for $33.1 million.
The sell-off happened at the same time that the market became more sensitive to Powell’s policy stance. The Fed’s recent 25-basis-point rate decrease, which brought the benchmark rate down to 4.00%–4.25%, was called a “risk management” measure instead of a promise to make things easier. Powell talked about “elevated” inflation risks and “downside risks to employment,” which made people think twice about more cutbacks. Traders now forecast only two more rate cuts in 2025, which is less than what they thought before, and very little action in 2026. The U.S. Dollar Index (DXY) is still above 97.00, and 10-year Treasury yields are close to 4.15%, which makes people less willing to take risks.
Meanwhile, Fidelity’s FBTC had the most Bitcoin withdrawals, at $276.7 million in redemptions. ARK 21Shares’ ARKB lost $52.3 million in investor assets. The huge outflow changed a lot of the positive inflows from previous week as traders changed their positions in response to changes in monetary policy.
The most money that left Ethereum funds was in Fidelity’s $FETH, which had $33.1 million in redemptions. Bitwise’s $ETHW came in second with $22.3 million. BlackRock’s $ETHA added $15.1 million to the institutional selling pressure on investment instruments that focus on Ethereum.
Ali Martinez, an on-chain analyst, said that the outflows were not due to fundamental market pessimism, but rather short-term changes in posture. If the inflation data fulfills expectations, Friday’s Personal Consumption Expenditures report could cause positive flow reversals.
The market’s shaky mood as investors await Powell’s comments is further highlighted by the $363 million in Bitcoin ETF withdrawals. Positioning is being driven by caution rather than confidence, with Fidelity’s FBTC leading redemptions and Ethereum funds also seeing pressure. Friday’s inflation report will be the next trigger, and it has the potential to either calm flows or increase apprehension about the Fed’s future course.
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