Investors pulled a net $218 million from US Bitcoin exchange-traded funds, one of their worst daily outflows as demand for risky investments takes a knock from fading hopes for Federal Reserve interest-rate cuts.
Thursday’s figure encompasses a $23 million drawdown for the Fidelity Wise Origin Bitcoin Fund, the first since the product began trading on Jan. 11 along with a batch of peers such as BlackRock Inc.’s iShares Bitcoin Trust.
While the group of almost a dozen ETFs broke records on the way to amassing combined assets of about $54 billion to date, demand slumped recently. US inflation data pointing to higher-for-longer borrowing costs has boosted Treasury yields, a poor backdrop for speculative investments like crypto.
“Bottom line, we can expect BTC to take a breather as long as the macro mood continues to support higher yields,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.
The $218 million overall outflow is the fourth-worst for the slew of ETFs. On Wednesday, BlackRock’s fund broke a 71-day streak of consecutive inflows.
Bitcoin was steady at $64,320 as of 8:10 a.m. in London on Friday, down from a mid-March record of $73,798. Hong Kong is due to debut spot-crypto ETFs next week, an event some see as a possible catalyst for increased volatility.
“This is a definite plus for the industry, but will probably not generate floods of inflows on day one,” said Acheson. “The impact will come more from the spread of easy onramps, and from broadening crypto education.”
Copyright Bloomberg News
A $141M judgment and a federal asset freeze collide over one shrinking pool
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
