This development occurred amid a more hawkish-than-expected Federal Open Market Committee (FOMC) meeting, which led to a shift in investor sentiment. The outflows were primarily concentrated in Bitcoin, with $621 million exiting the funds, while short-Bitcoin saw inflows of $1.8 million.

Grayscale's converted GBTC ETF led the outflows with $274.3 million exiting the higher-fee fund, followed by Ark Invest's ARKB and Fidelity's FBTC, which registered $149.7 million and $146.3 million in net outflows, respectively. BlackRock's IBIT was the only fund to generate net inflows last week, attracting $41.6 million, while the remaining US spot Bitcoin ETFs witnessed net outflows of zero flows for the week. Total net inflows into the ETFs since trading began in January now stand at $15.1 billion.

The spot Bitcoin ETFs had been on a record 19-day positive streak prior to last week, bringing in over $4 billion in net inflows. The run came to an end last Monday with $64.9 million in net outflows following a drop in Bitcoin's price after US non-farm payroll data and unemployment data gave conflicting outlooks on the US economy, causing uncertainty that led investors to move out from more risky assets, according to crypto trading firm QCP Capital. The ETFs experienced another $200.4 million worth of net outflows on Tuesday ahead of the FOMC meeting on Wednesday, which saw the only day of net inflows last week, bringing in $100.8 million. However, after the Federal Reserve held interest rates at 5.5% and indicated just one rate cut was coming in 2024 amid persistent inflationary pressures, spot Bitcoin ETF net outflows of $226.2 million and $189.9 million followed on Thursday and Friday.

Globally, digital asset investment products registered $600 million in net outflows last week — the largest since March 22, according to CoinShares' latest report. The net outflows, combined with a 5% drop in the price of Bitcoin amid a broader crypto market sell-off last week, saw global assets under management fall from $100 billion to $94 billion. The outflows were likely due to a more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed-supply assets.

Global digital asset investment product trading volumes also remained lower last week at $11 billion compared to the weekly average of $22 billion this year, according to CoinShares. The US spot Bitcoin ETFs generated $8.73 billion in trading volume for the week but remain significantly down from a peak of $32.69 billion for the week of March 4-8 . Cumulative spot Bitcoin ETF trading volumes are now approaching $300 billion, according to The Block's data dashboard .