Bitcoin ETFs Bleed $470 Million as Market Struggles to Find Direction
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Bitcoin The bullish momentum seen earlier this week in U.S. spot Bitcoin exchange-traded funds abruptly reversed on Wednesday, with investors pulling out nearly half a billion dollars as the world’s largest cryptocurrency slid to around $108,000 before staging a mild recovery. Fresh data from Farside Investors showed that major issuers faced heavy withdrawals after several days of inflows. Fidelity’s fund accounted for the largest portion of the losses, while ARK Invest and BlackRock followed closely behind. Grayscale’s flagship trust and Bitwise’s ETF also recorded smaller redemptions, rounding out a difficult trading session for institutional crypto products. The timing of the sell-off raised eyebrows across the financial community. It came right after the Federal Reserve delivered a quarter-point rate cut that initially lifted risk appetite but quickly reignited concerns about lingering inflation and a possible slowdown in growth. The mixed signals left investors unsure whether to treat the move as a green light for renewed risk-taking or a sign of trouble ahead. Bitcoin Price Caught in Crosscurrents Bitcoin reflected that hesitation in price action, swinging sharply between $108,000 and $113,000 throughout the day. The drop came despite positive geopolitical news, as U.S. President Donald Trump and Chinese President Xi Jinping struck a deal to ease trade tensions and maintain rare earth exports. The combination of shifting monetary policy and global diplomacy has created a volatile backdrop that continues to test investor conviction. Market analysts say this pattern of ETF inflows and outflows closely mirrors short-term shifts in sentiment rather than long-term demand. “Institutional investors appear to be taking quick profits and rebalancing as macro risks remain unpredictable,” said one strategist. ETF Holdings Still Tower Over the Market Even after the pullback, spot Bitcoin ETFs collectively hold more than 1.5 million BTC—an amount worth roughly $169 billion at current prices and representing…
