U.S. spot Bitcoin ETFs see $630 million outflow as inflation data triggers risk-off shift

• U.S. spot Bitcoin ETFs recorded a net outflow of $630.4 million on Wednesday, marking the largest single-day redemption in over three months.
• The exit was driven by surging inflation data, with April PPI hitting 6% and CPI reaching 3.8%, dampening hopes for Federal Reserve rate cuts.
• Selling was concentrated in ARK Invest’s ARKB and Fidelity’s FBTC, while BlackRock’s IBIT managed to maintain positive momentum with modest inflows.

U.S. spot Bitcoin exchange-traded funds experienced a significant retreat on Wednesday, posting $630.4 million in net outflows as macroeconomic headwinds weighed heavily on risk appetite. This reversal ended a multi-week streak of positive inflows and represents the steepest daily exit of capital since late January, when the group saw over $800 million in redemptions.

The primary catalyst for the sell-off was a dual shock in inflation metrics. The Producer Price Index (PPI) climbed to 6% year-over-year, while Consumer Price Index (CPI) data settled at 3.8%—both figures surpassing analyst expectations. This “hotter-than-expected” data has led institutional traders to reprice the likelihood of Federal Reserve rate cuts, with many now bracing for a “higher-for-longer” interest rate environment or even the possibility of further hikes.

According to data from Farside Investors, the outflow was broad-based among major issuers. ARK Invest’s ARKB led the losses with a combined withdrawal of approximately $461.8 million across its tranches, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC), which shed $133.2 million. Bitwise’s BITB also saw $35.4 million in exits. In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) continued to demonstrate relative resilience, recording positive inflows that partially offset the broader market flight.

The institutional de-risking comes as Bitcoin’s price struggles to maintain the $80,000 level. Analysts noted that the shift in sentiment was also visible in the derivatives market, where a rising put/call ratio and increased deleveraging of long positions suggested a more cautious outlook among professional traders.

“The inflation shock significantly reshaped expectations for Federal Reserve policy,” noted Ilya Otienko, chief analyst at CEX.IO. “This triggered broad risk-off positioning that weighed on Bitcoin and accelerated ETF outflows, intensified by concerns that the Fed could consider rate hikes later this year.”

Market participants are now closely monitoring upcoming regulatory developments and secondary macro indicators, including energy price fluctuations and the progress of the Clarity Act hearing, to gauge the next direction for digital asset flows.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.

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