Spot Bitcoin ETFs See Historic Withdrawals with CME Futures Premium Suggesting Falling Demand.

Bitcoin exchange-traded funds (ETFs) saw unprecedented outflows, losing a total of $671.9 million as Bitcoin’s price continued to decline after the Federal Reserve meeting, dipping below the $100,000 mark.

On Thursday, U.S.-listed spot Bitcoin ETFs experienced their largest withdrawals since their inception on January 11, as the CME futures premium fell into single digits, indicating a dip in short-term demand. Investors reversed a 15-day streak of inflows, pulling $671.9 million from the 11 Bitcoin ETFs, according to data from Coinglass and Farside Investors.

The largest contributors to these outflows were Fidelity’s FBTC and Grayscale’s GBTC, which saw losses of $208.5 million and $188.6 million, respectively. Other funds also reported outflows, and BlackRock’s IBIT ETF recorded zero inflows for the first time in weeks.

Bitcoin’s price further retreated on Thursday, dropping to $96,000, nearly 10% below its recent peak of $108,268 earlier in the week.

This pessimistic sentiment was also evident in the derivatives market, where the annualized premium on the CME’s one-month regulated Bitcoin futures dropped to 9.83%, marking the lowest level in over a month, according to Amberdata.

This drop in the premium suggests that cash-and-carry arbitrage strategies, which involve taking a long position in Bitcoin ETFs while shorting CME futures, are less profitable. As a result, demand for Bitcoin ETFs may remain weak in the near term.

Ether ETFs also saw outflows, with a net withdrawal of $60.5 million, the first such decline since November 21. Ether’s value has fallen by 20% since exceeding $4,100 before Wednesday’s Federal Reserve announcement.