Bitcoin Net Outflows, Ethereum ETFs on Fed Cuts Day

In the days leading up to the highly anticipated US FOMC meeting, when the central bank was expected to cut interest rates, local investors were shopping for spot Bitcoin ETFs.

However, that changed when the day came.

Bitcoin ETF Exits

CryptoPotato reported yesterday on the impressive streak of the four days of trading leading up to the FOMC meeting. As mentioned, just over $500 million in net inflows went into the 11 spot Bitcoin ETFs from September 12-17.

However, yesterday the landscape was different. Although the Federal Reserve cut key interest rates by 50 basis points, while general expectations were for a more modest cut of 0.25%, financial vehicles recorded $52.7 million in net outflows during the day

Ark Invest’s ARKB led the downside with $43.4 million in net withdrawals. Grayscale’s largest seed fund (GBTC) was next with $8.1 million, and BITB was close behind with $3.9 million. The rest saw little to no real flows, while Grayscale’s smallest and newest fund, BTC, saw $2.7 million in inflows.

BlackRock’s IBIT remains the largest of the group, with nearly $21 billion in AUM. However, there has only been one day of positive flow in the past three weeks.

In contrast, Fidelity’s FBTC enjoyed a favorable seven-day streak of net inflows before yesterday’s lack of action.

Consistency for Ethereum ETFs

While local Bitcoin ETFs saw more than $500 million in net inflows in the days leading up to the Fed’s policy pivot, their Ethereum counterparts didn’t have the same luxury. Withdrawals stood at $15.1 million on Tuesday and $9.4 million on Monday.

Their situation did not improve much yesterday when investors pulled a total of $9.8 million from ETH-based products. Grayscale’s ETHE was back on top, with $14.7 million in net outflows.

The only upside came from BlackRock’s EHTA, which saw $4.9 million in net inflows. ETHA is the only new financial vehicle tracking the performance of Ethereum that has passed the coveted $1 billion milestone since its inception a couple of months ago.

Despite negative days for Bitcoin and Ethereum ETFs, underlying asset prices soared to multi-week highs. BTC was close to $63,000 today, while ETH was close to $2,450.

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