The U.S.-based spot Bitcoin exchange-traded funds (ETFs) experienced a significant shift after reaching a record level in total inflows.
On Tuesday, there was a net outflow exceeding $96 million, breaking the previous upward trend. Over $91 million was drawn from Fidelity’s FBTC fund alone, while Hashdex’s DEFI product also saw a decrease of approximately $5 million. All other spot Bitcoin ETFs recorded zero flows on the same day. Market participants are linking this decline to the U.S.-China trade talks and inflation data, which are influencing investor sentiment.
First Outflow Following Record Inflows
As of Monday, the cumulative net inflow for the total 12 spot Bitcoin ETFs had reached a historic high of $41.18 billion. However, just a day later, transactions halted in all funds except for Fidelity’s and Hashdex’s, with these two major funds witnessing a collective outflow of $96.14 million, garnering significant market attention. This development concluded a four-day ongoing inflow streak.
Fidelity’s FBTC fund, since its launch, had been one of the most in-demand products from investors. However, the recent exit suggests large investors may be aiming for short-term profit-taking or are pricing in uncertainties in market conditions. The decline in Hashdex’s DEFI fund, although more limited, hints at fluctuating investor confidence.
Investors Track Developments in Inflation and Trade Talks
Despite the disruption in ETF inflows, the overall outlook in the cryptocurrency market remains positive. Within the last 24 hours, Bitcoin (BTC) 
$105,140 saw a 1.4% increase, trading at $103,775, while Ethereum (ETH) 
$2,432 climbed by 8.9%, reaching $2,667. The fluctuations in these major cryptocurrencies are believed to be influenced by progress signals in the ongoing U.S.-China trade talks and the release of inflation data.
April’s Consumer Price Index (CPI) data showed a modest monthly inflation increase of only 0.2%. The annual inflation rate fell to 2.3%, marking its lowest point since February 2021. The inflation data was positively received by markets, as it expanded the Federal Reserve’s room for maneuver regarding interest rate cuts. Presto Research analysts note that the economic effects of the trade tensions with China and the inflation outlook will be key determinants in the quest for new directions within the cryptocurrency market.
