The sinister Powell. Since their approval on 10 January 2024, Spot bitcoin ETF they enjoyed huge success, they collected tens of billions of dollars in net inflows. But a recent speech Jerome Powellthe chairman of the Fed, caused a sharp fall financial markets, especially cryptocurrencies. And bitcoin ETFs have a lot too suffered.
- The speech by Jerome Powell (President of the US Fed) caused a dramatic drop in the markets, which affected spot bitcoin ETFs in particular.
- December 19 was the worst day for BTC ETFs, with net outflows totaling nearly $672 million, despite phenomenal success since their launch.
The largest outflow of capital from Bitcoin ETFs took place on December 19
As already mentioned in the introduction, the speech of the president of spol Federal Reserve System American sharply cooled market players. In fact, even if the Fed once again On December 18, 2024, it cut its key rates by 25 basis points (which was itself a good news for assets riskwith an overall decrease of 1% this year), Jerome Powell’s words spooked traders and investors right after that.
In fact, the central banker has indicated that his institution does calm reducing its interest rates in 2025 by capping them a priori only two. It didn’t take more than a few words from Powell hundreds of millions of dollars disappear. And that also had an impact Spot bitcoin ETFwho thus recognize their own worst day from their listing on the stock exchanges on January 11, 2024.
According to tracking data from Farside Investors, they are $671.9 million net who left the bitcoin exchange traded funds yesterday. The biggest loss this time comes from the fund FBTC (Fidelity Wise Origin Bitcoin Fund) from Fidelitywith 208.5 million net outflows on this single day, December 19th.
Despite yesterday’s blood red day, we note that the BTC ETF place previously noted 13 consecutive days of net tide (of which almost 767 million dollars for a single day on December 5). Nor does he question it at all incredible accumulation of capital created since the beginning of the year, as spot bitcoin ETFs always record more than Net inflows of $36.3 billion to this day.