US Bitcoin ETF sees historic flows as brutal sell-off shakes crypto markets

Key Takeaways

US Bitcoin ETFs had historic outflows with investors withdrawing $672 million in a day.
The Fidelity Bitcoin Fund led the outflows, followed by Grayscale and ARK Invest ETFs.

US spot Bitcoin ETFs suffered their biggest one-day outflow ever amid a sharp sell-off in the crypto market after the FOMC meeting. According to Farside Investors dataabout $672 million left those funds on Thursday, ending a period of net inflows that began in late November.

The massive withdrawal surpassed the previous record of nearly $564 million set in May 1, when the spot group Bitcoin ETFs saw nearly $564 million in withdrawals after Bitcoin fell 10% to $60,000 over a week.

The Fidelity Bitcoin Fund (FBTC) led the exodus with $208.5 million in outflows, while the Mini Grayscale Bitcoin Trust (BTC) recorded its lowest point since launch with more than $188 million in outflows naked

Bitcoin ETF ARK Invest (ARKB) and Grayscale Bitcoin Trust (GBTC) also saw pullbacks, with ARKB losing $108 million and GBTC shedding nearly $88 million. Meanwhile, three competing ETFs managed by Bitwise, Invesco, and Valkyrie lost a combined $80 million.

BlackRock iShares Bitcoin Trust (IBIT), which recorded $1.9 billion in net inflows this week and contributed significantly to the group's recent strong performance, recorded zero flows for the day.

WisdomTree Bitcoin Fund (BTCW) was the only gainer, attracting $2 million in new investments.

Bitcoin price fell below $96,000 during the market downturn and is currently trading at around $97,000, down 4% over 24 hours, according to CoinGecko data. The sharp decline across all assets prompted $1 billion in leveraged liquidations Thursday, Crypto Briefing reported.

The market turmoil followed the Fed's hawkish messaging after its rate cut decision. The Fed implemented a 25-point rate cut on Wednesday but signaled fewer cuts in 2025.

Although there is still price volatility, the Crypto Fear and Greed Contents still showing a sense of greed at 74, down just one point from yesterday.