Bitcoin and Ethereum ETFs See Outflows Amid Fed Caution
Spot Bitcoin (BTC) ETFs posted their first daily outflows in over a week on Wednesday, shedding $51.28 million as investors digested the Federal Reserve’s cautious outlook on future policy.
The pullback ended a seven-day inflow streak that had brought in nearly $3 billion, though total Bitcoin ETF assets under management remain above $150 billion, according to SoSoValue data. The shift came after Fed Chair Jerome Powell highlighted economic uncertainty and indicated fewer rate cuts ahead than markets had anticipated.
The Fed did deliver a 25-basis-point cut, lowering the benchmark to 4.00%-4.25%, marking its first cut of the year. However, updated projections suggested only two additional cuts in 2025 and fewer in 2026, sending a cautious signal to investors. Powell also noted “elevated” inflation and rising “downside risks” to employment, prompting a mild pullback in risk assets.
Ethereum (ETH) ETFs also experienced net redemptions for a second straight day, totaling $1.89 million following $61.7 million outflow in the prior session.
Despite ETF outflows, cryptocurrency prices showed modest gains. Bitcoin climbed about 0.3% over 24 hours, while Ethereum rose 1.7%. The broader CoinDesk 20 (CD20) index increased 2%, reflecting selective buying amid cautious market sentiment.
