US BTC-Spot ETF Market Inflow Streak at Risk
On Wednesday, November 13, the US BTC-spot ETF market reported net inflows of $510.1 million. Demand remained robust following the US CPI Report that raised expectations for a December Fed rate cut. However, Thursday’s producer price and jobless claims numbers sank bets on a December Fed rate cut, adversely impacting the US BTC-spot ETF market. According to Farside Investors:
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $179.2 million on Wednesday. (Previous day: +$186.1 million).
- ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $161.7 million. (Previous day: $14.5 million).
- Bitwise Bitcoin ETF (BITB) had net outflows of $113.9 million. (Previous day: +$12.3 million).
Excluding flow data for iShares Bitcoin Trust (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), the US BTC-spot ETF market saw $527.2 million of net outflows. Significantly, the US BTC-spot ETF market could end its six-day inflow streak if BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) sees modest inflows.
Thursday’s flow trends highlighted the significant influence of Fed monetary policy on BTC demand.
ETF Store President Nate Geraci remarked on the six-day inflow streak, stating,
“Another $500+mil into spot btc ETFs today… 6 straight days of inflows totaling $4.7bil. Quickly approaching $30bil net inflows since January launch. Simply ridiculous.”
Bitcoin (BTC) Price Action
On Thursday, November 14, BTC declined by 3.13%, reversing a 3.37% gain from the Wednesday session to close at $87,325. Significantly, BTC fell for only the second time since the US presidential election.
Upcoming US retail sales, due on Friday, November 15, could also influence sentiment toward the Fed rate path. Higher-than-expected retail sales could sink bets on a December rate cut and dampen BTC demand. Conversely, weaker-than-expected retail sales could refuel speculation about a December rate cut, potentially driving BTC through $95,000.
Stay tuned for the latest on how market shifts and regulatory developments impact crypto assets.