Bitcoin and Ethereum ETFs Experience Outflows as Fed Signals Caution
Spot Bitcoin (BTC) ETFs saw their first daily outflows in over a week on Wednesday, losing a net $51.28 million, as investors reacted to the Federal Reserve’s more cautious outlook on future monetary policy.
The withdrawals ended a seven-day streak that had brought in nearly $3 billion. Total assets under management remain above $150 billion, according to SoSoValue data, but market sentiment shifted after Fed Chair Jerome Powell highlighted economic uncertainty and indicated fewer rate cuts ahead than traders had expected.
While the Fed did deliver a 25-basis-point rate cut—the first of the year, bringing the benchmark to 4.00%-4.25%—its updated projections suggested only two more cuts in 2025 and fewer in 2026 than markets had priced in. Powell warned of “elevated” inflation and growing “downside risks” to employment, which investors interpreted as a cautiously hawkish signal, triggering mild pullbacks in risk assets.
Ethereum (ETH) ETFs also posted net redemptions for a second consecutive day, totaling $1.89 million after $61.7 million exited the previous session.
Despite ETF outflows, cryptocurrency prices edged higher. Bitcoin rose roughly 0.3% over 24 hours, while Ethereum gained 1.7%. The broader CoinDesk 20 (CD20) index increased 2%, suggesting selective buying amid caution in the market.
