Bitcoin and Ethereum ETFs See Outflows as Fed Signals Caution

Spot Bitcoin (BTC) ETFs experienced their first daily outflows in over a week on Wednesday, shedding a net $51.28 million, as investors reacted to the Federal Reserve’s cautious guidance on future policy.

The outflow ended a seven-day streak that had brought in nearly $3 billion. Despite the pullback, total assets under management for Bitcoin ETFs remain above $150 billion, according to SoSoValue data. Market sentiment shifted after Fed Chair Jerome Powell highlighted economic uncertainty and indicated fewer rate cuts ahead than traders had anticipated.

While the Fed delivered 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 additional cuts in 2025 and fewer in 2026 than markets had priced in. Powell emphasized “elevated” inflation and rising “downside risks” to employment, prompting investors to interpret the move as a cautiously hawkish cut and sparking a mild pullback in risk assets.

Ethereum ETFs also recorded net redemptions for a second consecutive day, with outflows totaling $1.89 million after $61.7 million exited the previous session.

Meanwhile, cryptocurrency prices moved modestly higher. Bitcoin gained around 0.3% over 24 hours, while Ethereum (ETH) rose 1.7%. The broader CoinDesk 20 (CD20) index advanced 2%, reflecting selective buying despite ETF outflows.