U.S. Bitcoin ETFs experienced a net inflow of over $100 million on Wednesday after a brief two-day outflow period. Fidelity’s FBTC ETF led the charge, attracting $51 million, followed closely by BlackRock’s IBIT ETF, which saw $16 million in new investments. This resurgence comes after a short-lived outflow streak that had disrupted a record 19-day run of continuous inflows.

During the first part of the week, investors had pulled funds from Bitcoin ETFs, marking a break in the previously steady inflow pattern. However, Wednesday saw a reversal with a total of $100.9 million being funneled back into the eleven U.S. spot Bitcoin ETFs. This shift suggests a renewed confidence among investors in the Bitcoin market despite the recent outflows.

According to data from SosoValue, Fidelity’s FBTC ETF received the highest inflow of $51 million, reinforcing its position as a preferred investment vehicle. BlackRock’s IBIT ETF was next in line with $16 million, while Bitwise’s BITB ETF and VanEck’s HODL ETF secured $15 million and $12 million respectively. Ark Invest’s ARKB ETF also saw a positive inflow of $9 million. Notably, some funds, including those from WisdomTree, Invesco, and Grayscale’s GBTC, did not see any inflows, with GBTC continuing its trend of net withdrawals since January.

This influx of capital coincided with the release of key economic data from the U.S. economy. According to CNBC, the U.S. Labor Department reported no increase in the May consumer price index, hinting at a potential slowdown in inflation. Despite this, the Federal Open Market Committee (FOMC) decided to maintain the interest rates within the 5.25% to 5.50% range during their meeting on Wednesday. The Federal Reserve has indicated that it anticipates only one rate decrease in 2024, suggesting that they do not yet believe the deflationary trend has fully taken hold.

Following the Fed’s announcement, Bitcoin prices surged to $70,000. However, this spike was short-lived as the price quickly reversed, reflecting the market's volatility. As of now, Bitcoin is trading at $67,729, marking a slight decrease of 0.24% over the past 24 hours, based on data from CMC.

The recent inflow into Bitcoin ETFs reflects a broader trend of cautious optimism among investors, who seem to be balancing concerns over inflation and interest rates with the potential long-term benefits of investing in Bitcoin. This pattern of investment behavior underscores the complex interplay between macroeconomic indicators and market sentiment within the cryptocurrency space.

The U.S. Bitcoin ETF market continues to be a dynamic and rapidly evolving landscape. Despite occasional periods of outflows, the overall trend has been one of growth and increasing investor participation. The substantial inflows observed on Wednesday highlight the resilience of Bitcoin as an asset class and the continued interest from institutional investors.

As the market navigates through these fluctuations, the role of ETFs in providing a structured and accessible way for investors to gain exposure to Bitcoin remains crucial. This latest development is a testament to the enduring appeal of Bitcoin ETFs, even amid economic uncertainties and shifting market conditions.