On Thursday, Ark Invest’s spot Bitcoin exchange-traded fund (ETF), ARKB, experienced a substantial net outflow of $100 million, marking its largest single-day outflow since its launch in January, according to SosoValue data.

This significant outflow from ARKB contrasts with the overall trend in US spot ETFs, which saw their 13th consecutive day of combined net inflows, totaling $48.71 million. Specifically, while ARKB lost nearly $100 million, Fidelity’s FBTC led net inflows with $119 million, Bitwise’s BITB added $26 million, and both BlackRock’s IBIT and the Invesco and Galaxy Digital Bitcoin ETF saw modest inflows of $2 million each. Meanwhile, Grayscale’s GBTC, which recently became the second-largest Bitcoin ETF by net assets, recorded no flows.

The substantial movement in ARKB and other ETFs reflects a heightened state of investor uncertainty, driven by anticipation of key economic reports and potential changes in Federal Reserve policies. Rachael Lucas, a crypto analyst at BTC Markets, noted that these unusual ETF flows stem from growing investor concerns about the Fed's next decision on interest rates. She mentioned that a rate cut in September would only occur if inflation remains within expectations and personal income and spending trends do not rise. Otherwise, a more hawkish stance from the Fed could negatively impact demand for riskier assets like Bitcoin and related ETFs.

Despite the volatility, US spot Bitcoin ETFs have seen over $2 billion in net inflows over the past 13 days, marking the second-longest streak of positive inflows since a 17-day run in January. However, the overall volume of flows remains significantly below peak levels observed in March, underscoring the crypto market's inherent volatility.

The record outflows from ARKB and the mixed performance of other Bitcoin ETFs highlight the crypto market's sensitivity to economic indicators and central bank policies. As the market awaits upcoming US inflation and personal spending reports, ETF flows are expected to remain volatile.