Bitcoin ETFs Records $470M Outflows With Interest Rate Cuts

The Federal Reserve's rate cut led to a volatile day for US markets, with spot Bitcoin ETFs experiencing their largest day of outflows in two weeks.

According to statistics from Farside Investors, US-listed spot Bitcoin exchange-traded funds (ETFs) lost $470 million on Wednesday as the price of the cryptocurrency briefly dropped to $108,000 before rising again.

Bitcoin ETFs See $470M Outflows

With $164 million, Fidelity's FBTC led the exodus, followed by ARK Invest's ARKB, which experienced a $143 million decline. IBIT from BlackRock completed the top three with outflows of $88 million.

Bitwise's Bitcoin ETFs, BITB, experienced a comparatively small loss of $6 million, while Grayscale's GBTC also saw outflows of $65 million.

With $149 million pouring in on Monday and almost $202 million on Tuesday, the dip follows a couple of days of consistent growth.

According to crypto investment analysis platform SoSoValue, the withdrawals have also decreased cumulative net inflows to $61 billion and total assets under management to $149 billion, or 6.75 percent of Bitcoin's market value.

Bitcoin Price is Under Pressure following The Rate Cut

According to CoinGecko, the price of Bitcoin has fluctuated over the past day between $108,201 and $113,567. It declined even though the US Federal Reserve decided to lower interest rates by 25 basis points; however, it has increased following a meeting between Chinese President Xi Jinping and US President Donald Trump, during which they discussed trade tensions between the two nations.

Analysts have confirmed that ETF inflows are correlated with the price of the coin, with significant inflows into the investment vehicles driving a rise in early October.

According to Bitbo, despite the withdrawals, Bitcoin ETFs still own more, valued at $169 billion, or 7.3% of the whole supply.