Bitcoin (BTC) and Ether (ETH) Exchange-Traded Funds (ETFs) See Substantial Withdrawals as Macroeconomic Uncertainties Cast a Shadow

U.S.-listed spot bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) saw substantial net outflows on Wednesday, as macroeconomic concerns continue to impact the cryptocurrencies' price movements.

According to data from SoSoValue, 11 bitcoin ETFs recorded a combined net outflow of $582 million, marking the second-largest total outflow since these alternative investment vehicles began trading a year ago. The largest outflow was recorded on Dec. 19, with $680 million being withdrawn from these ETFs.

The heavy outflows from the bitcoin ETFs were led by Fidelity's FBTC, which saw a record outflow of $258 million, while BlackRock's IBIT saw an outflow of $124 million.

Meanwhile, ether ETFs saw net outflows of $159.3 million, marking the largest outflow since July 26, when these public funds processed withdrawals worth $162 million.

These large outflows from crypto ETFs come amid renewed U.S. inflation concerns, which have led to increased volatility in the bond markets and caused a sell-off in riskier assets.

Over the past three days, bitcoin's price has seen a sharp decline of nearly 8.5%, as the bulls' attempts to establish a foothold above the $400,000 level have faced difficulties.

On Wednesday, the minutes from the Federal Reserve's Dec. 18 meeting were released, revealing that officials believed the central bank was nearing the point that called for a slowing policy-easing pace.

The notes from the meeting also showed that officials were concerned about the potential inflationary impact of incoming President Donald Trump's policies.

Despite the bearish outflows and the recent sell-off in bitcoin, some analysts remain optimistic, expecting a renewed upswing following Friday's nonfarm payrolls report.

"The U.S. employment report on Friday is highly anticipated by investors, as it will provide critical insights into the health of the U.S. economy. We expect limited volatility heading into the weekend and recommend maintaining a heavy exposure to digital assets, with a preference for Bitcoin over Ethereum," Valentin Fournier, analyst at BRN, said in an email.