Bitcoin ETFs Suffer $630M Exodus, Worst Day Since January

U.S. spot Bitcoin ETFs experienced their steepest single-day outflow in three months on Wednesday, losing $630.4 million as inflation data spooked institutional investors.

BlackRock's IBIT led the sell-off with $284.7 million in redemptions, followed by ARK Invest's ARKB down $177.1 million, Fidelity's FBTC losing $133.2 million, and Bitwise's BITB shedding $35.4 million.

Analysts attribute the exodus to profit-taking and repositioning triggered by hotter-than-expected April CPI and PPI reports, raising concerns the Federal Reserve might consider rate hikes.

Despite the sharp outflow, some analysts view the move as healthy consolidation. Peter Chung of Presto Labs noted that higher prices incentivize profit-locking by certain investors, a sign of market maturity.

Bitcoin is currently trading at $79,540, down 1.6% in the last 24 hours.