What was the strategy of US investors during the week of Fed cuts?

It was an important week for financial markets and the global economy as the central bank of the world’s strongest economy pivoted from its monetary policy stance and cut key interest rates by 0.5% .

As such, it’s worth reviewing how local investors fared when it came to their interactions with spot Bitcoin and Ethereum ETFs.

BTC ETF on the entry side

CryptoPotato reported on Wednesday that US investors were making purchases for local Bitcoin ETFs. In the four trading days before the FOMC meeting, net inflows to the 11 financial vehicles were just over $500 million.

Their behavior changed on the day of the rate cuts when the numbers turned red, with $52.7 million in net outflows. However, they reversed their strategy again on Thursday and Friday, with $158.3 million and $92 million in net receipts, respectively.

On a weekly basis, this means there were more withdrawals on Wednesday alone. Overall, total net receipts for the week stood at $397.2 million.

What’s particularly interesting about the past few weeks is the lack of real interest in the largest Bitcoin ETF: BlackRock’s IBIT. It has only seen one day of positive flows since August 26th, which occurred on September 15th. There have been two days of net outflows in the same time period, while the other trading days saw no reportable action, according to FarSide.

In contrast, Fidelity’s FBTC has attracted impressive amounts on September 17 ($56.6 million), September 19 ($49.9 million) and September 20 ($26.1 million). Ark Invest’s ARKB and Bitwise’s BITB have also seen impressive flows in recent weeks.

Ethereum ETFs see positive streak

Spot Ethereum ETFs have failed to capture the attention of investors in the two months they’ve been trading on US exchanges. However, there have been some minor positive signs in recent days.

FarSide shows two consecutive days of net receipts: $5.2 million on Thursday and $2.9 million on Friday. However, these figures are still quite insignificant and the overall weekly figure is in the red.

Net outflows were $9.4 million on Monday, $15.1 million on Tuesday and $9.8 million on Wednesday. As such, the week of Fed rate cuts ended with $26.2 million in net outflows for Ethereum ETFs.

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