$BOME
In the most recent week, U.S. Bitcoin exchange-traded funds (ETFs) have experienced severe fund withdrawals. On Thursday local time, investors withdrew a total of $218 million from the ETF market, one of the worst single-day outflows, reflecting a significant decline in demand for risky assets as expectations of a rate cut by the Federal Reserve weakened.
In the divestment, the Fidelity Wise Origin Bitcoin Fund alone withdrew $23 million, marking the fund’s first withdrawal since it began trading on Jan. 11 with products such as BlackRock Inc.’s iShares Bitcoin Trust.
While total assets in the portfolio of nearly a dozen ETFs have reached an all-time high of about $54 billion, rising long-term borrowing costs and rising U.S. Treasury yields, as shown by inflation data, have created an incentive to invest in riskier assets like Bitcoin. Adverse conditions.
