
Bitcoin exchange-traded funds (ETFs) are experiencing record capital outflows as uncertainty around Federal Reserve monetary policy and the broader U.S. economic environment prompts institutional investors to reduce exposure to riskier assets like Bitcoin. Initially seen as a stable, regulated way to attract patient institutional money, Bitcoin ETFs are now revealing their vulnerability to macroeconomic pressures, challenging their role as a reliable investment vehicle. The future of these ETFs depends heavily on upcoming Fed decisions and economic signals, with investors closely watching for signs of stability or further volatility.