Livepeer (lpt) 
Spot Bitcoin ETFs in the US saw significant outflows on February 12, amid expectations of a more hawkish Federal Reserve stance on interest rate cuts.
Outflows Reach $251.03 Million
According to recent data, the 12 spot Bitcoin ETFs recorded $251.03 million in outflows—a 342% jump from the $56.76 million seen the previous day. This significant increase in outflows suggests that investors are becoming increasingly cautious about the market’s future prospects.
Leading Outflows by ETF
The top outflows by ETF were:
- Fidelity’s FBTC: $101.97 million
- ARK and 21Shares’ ARKB: $97.03 million
- Bitwise’s BITB: $25.94 million
- BlackRock’s IBIT: $22.11 million
- Invesco Galaxy’s BTCO: $9.69 million
- Grayscale’s GBTC: $6.92 million
- Valkyrie’s BRRR: $3.71 million
However, Grayscale’s mini Bitcoin Trust was an exception, recording $16.34 million in inflows.
Ether ETFs Also Experience Outflows
Ether ETFs also saw a significant reversal, with nine ETFs turning negative. ETH ETFs recorded $40.95 million in redemptions, reversing the previous day’s $12.58 million in inflows. The losses came entirely from Grayscale’s ETHE and Fidelity’s FETH funds, which saw $30.23 million and $10.72 million in outflows, respectively.
Market Reaction to Inflation Data
The outflows in Bitcoin and Ethereum ETFs coincided with a decline in Bitcoin and Ethereum prices, following stronger-than-expected US inflation data. January’s inflation came in at 3.3% year-over-year, exceeding the 3.1% forecast.
“Any rate cut that does materialize could unleash a flood of liquidity, propelling equities and crypto higher.”
David Hernandez, crypto investment specialist at 21Shares, noted that this reaction could set the stage for a major rally if the Fed cuts rates later this year. Hernandez added that Bitcoin, in particular, could benefit significantly, potentially surging to new all-time highs.
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