Bitcoin ETFs just faced their second-largest outflow on record, with investors yanking $582 million on Wednesday, according to SoSoValue. To put it in perspective, that’s only slightly behind the all-time high of $680 million in December. Fidelity’s FBTC (FBTC) took the heaviest hit, shedding $258 million, while BlackRock’s IBIT (IBIT) lost $124 million. Ethereum ETFs weren’t spared either, bleeding $159 million—their largest outflow since July.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
U.S. Inflation Fears Trigger Sell-Off
What’s behind this mass exodus? Renewed inflation concerns in the U.S. are spooking investors. Minutes from the Federal Reserve’s December meeting revealed officials’ worries over the inflationary impact of President Trump’s policies. These fears have rattled the bond market, driving volatility and dragging down risk assets, including cryptocurrencies.
Bitcoin’s price has dropped nearly 8.5% in just three days, once again failing to hold above the critical $100,000 level. According to CoinDesk, this stumble has further shaken confidence in the cryptocurrency’s short-term prospects.
Analysts Pin Hopes on Jobs Data
Not everyone is hitting the panic button. BRN analyst Valentin Fournier remains optimistic, stating, “The U.S. employment report on Friday is highly anticipated by investors as it will provide critical insights into the health of the U.S. economy.” In an email to CoinDesk, he added, “We recommend maintaining a heavy exposure to digital assets, with a preference for Bitcoin over Ethereum.”
What Is the Best Bitcoin ETF to Buy?
For investors looking to find the Bitcoin ETFs that best suit their needs, conducting thorough research is crucial. A helpful resource for this is TipRanks’ Compare ETF tool. This tool allows investors to compare various Bitcoin ETFs side-by-side, examining key metrics such as performance history, expense ratios, and assets under management.
