Bitcoin ETF funds face a net withdrawal of 645 million USD, awaiting Powell's speech

Bitcoin ETF funds ($BTC ) in the US have seen a large net withdrawal, totaling 645 million USD in just two days. This outflow occurs as institutional investors are minimizing risk, waiting for the important speech of Federal Reserve Chairman Jerome Powell at the Jackson Hole conference.

Causes and impact

"Risk-averse" sentiment: Recent economic data, including weak employment reports and unclear inflation, has raised concerns among investors about the future interest rate policy of #Fed . This has prompted them to withdraw funds from riskier assets like Bitcoin before Powell provides clearer signals.

Strategic profit-taking: Analysts suggest that the current outflow is mainly a result of strategic profit-taking, following a strong price increase from mid-July to early August. This is not a sign of panic or abandonment of the market by institutions.

Cash flow and market

Data shows that Fidelity's FBTC fund led the net withdrawals, while Grayscale's GBTC and Bitwise's BITB also faced pressure. However, BlackRock's IBIT being unaffected indicates that this move is more strategic than a comprehensive retreat.

Although the ETF funds experienced strong net withdrawals, the price of Bitcoin only dropped slightly by 1.5% on the day. This is believed to be due to a large amount of 32 billion USD in stablecoins sitting on exchanges, ready to be used to absorb selling pressure. This indicates caution but not panic in the market.

Source: #Decrypt