U.S. Bitcoin ETFs Bleed Record $563M Even as Fed’s Powell Rules Out Rate Hike

U.S. Bitcoin exchange-traded funds (ETFs) experienced a significant outflow of $563 million on Wednesday, setting a new record. This occurred despite Federal Reserve Chairman Jerome Powell ruling out a rate hike, which briefly caused a bounce in BTC. The outflows were led by Fidelity’s FBTC, followed by GBTC, ARKB, and IBIT. Since April 24, investors have pulled nearly $1.2 billion from U.S.-based spot bitcoin ETFs. FBTC, which consistently attracted funds in the first quarter, lost $191.1 million in withdrawals on Wednesday. GBTC saw the second-largest outflow of $167.4 million, followed by ARKB with $98.1 million and IBIT with $36.9 million. Despite Powell’s net-dovish approach, other funds also experienced money outflows. Bitcoin’s initial rally from $56,620 to $59,430 in response to Powell’s comments was short-lived, with the cryptocurrency falling back to $57,300. The recent debut of Asia’s first spot bitcoin and ether ETFs in Hong Kong with disappointing volumes further worsened the crypto market’s sentiment.