Bitcoin ETFs bleed badly as nervous investors cash in $218 million – Break It Down

The torrent of liquidity that flowed for months into new Bitcoin Exchange Traded Funds (ETFs) is finally at a standstill. Investors withdrew nearly $218 million from these products yesterday, according to data from London-based investment company Farside Investors.

Substantial cash withdrawal comes after key federal economic report noted that the US economy grew more slowly than expected in the first quarter. These indicators likely mean the Federal Reserve won’t cut interest rates anytime soon, after raising them to their highest level in 23 years to combat inflation.

If interest rates remain high, investors generally avoid “risky” assets like Bitcoin.

Last January, the Securities and Exchange Commission approved 11 Bitcoin ETFs. Funds offer investors exposure to cryptocurrency by purchasing stocks that track Bitcointhe price via brokerage accounts.

They have been very popular, with record amounts of money poured into the products in the weeks following their launch. BlackRock’s iShares Bitcoin Trust (IBIT) is particularly popular.

But yesterday, after 71 days of capital inflows, no money entered the IBIT. And Grayscale’s ETF lost $139.3 million, while Fidelity’s fund (FBTC) lost $23 million, the product’s first outing since its launch.

THE Bitcoin price is now $63,562, down 1.1% over seven days. Last month, the larger coin hit a new high of nearly $74,000 per coin, but in April it traded well below its 2021 high of $69,000.

Edited by Ryan Ozawa.