Investors have withdrawn $1.7 billion from US spot Bitcoin ETFs this week, part of a $4.7 billion exodus since mid-May. The selloff accelerated as Bitcoin fell below $60,000 for the first time since October 2024, touching $59,353 on Friday.
BlackRock's IBIT led the outflows, shedding $1.3 billion for the week and $3.4 billion since May 15. Fidelity's FBTC lost $522 million, while Grayscale's GBTC saw $363 million in net losses over the same period.
The catalyst: a blowout US jobs report that surpassed all economist estimates, sending the dollar higher and ending hopes for near-term Federal Reserve rate cuts. With inflation rising to 3.8% and Kevin Warsh taking over as Fed chair, markets now price in at least one rate hike by year-end.
Policymakers are expected to remove any remaining dovish language from their June statement, with some officials now warning that rates may need to rise further if inflation remains sticky.
