Bitcoin and Ethereum ETFs See Outflows as Fed Signals Caution
Spot Bitcoin (BTC) ETFs recorded their first daily outflows in over a week on Wednesday, shedding $51.28 million as investors reacted to the Federal Reserve’s cautious guidance on future monetary policy.
The reversal ended a seven-day streak that had seen nearly $3 billion flow into Bitcoin ETFs. Despite the pullback, total assets under management remain above $150 billion, according to SoSoValue data. Market sentiment shifted after Fed Chair Jerome Powell highlighted economic uncertainty and suggested fewer rate cuts ahead than traders had expected.
The Fed’s 25-basis-point rate cut—the first of the year—lowered the benchmark to 4.00%-4.25%. However, updated projections pointed to just two additional cuts in 2025 and fewer in 2026, which market participants interpreted as a cautiously hawkish signal. Powell also emphasized “elevated” inflation and growing “downside risks” to employment, prompting mild pullbacks in risk assets.
Ethereum (ETH) ETFs also saw net redemptions for a second consecutive day, totaling $1.89 million, following $61.7 million in outflows the prior session.
Despite ETF withdrawals, cryptocurrency prices edged higher. Bitcoin gained roughly 0.3%, Ethereum rose 1.7%, and the broader CoinDesk 20 (CD20) index advanced 2%, reflecting selective buying amid investor caution.
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