Bitcoin and Ethereum ETFs Soar After Fed Hints at Rate Cuts

By Emir Abyazov

American Bitcoin and Ethereum ETFs have rebounded sharply after Federal Reserve Chair Jerome Powell signaled that the U.S. central bank may soon consider interest rate cuts. 

Investors quickly recovered from the recent sell-off, and capital began flowing back into crypto assets.

On October 14, spot Bitcoin ETFs recorded $102.58 million in inflows, a dramatic reversal from the $326 million outflow just a day earlier, according to SoSoValue. The Fidelity Wise Origin Bitcoin Fund (FBTC) led with $132.67 million in inflows, while BlackRock’s iShares Bitcoin Trust (IBIT) saw a smaller $30.79 million outflow.

Capital flows into U.S. Bitcoin ETFs. Source: Farside Investors

The total net assets of all spot Bitcoin ETFs rose to $153.55 billion, now representing 6.82% of Bitcoin’s market capitalization. Since their launch, cumulative net inflows have reached $62.55 billion.

Ethereum ETFs lead the comeback

Ethereum funds staged an even stronger recovery, attracting $236.22 million in net inflows following Monday’s $428 million outflow. The Fidelity Ethereum Fund (FETH) dominated with $154.62 million, followed by the Grayscale Ethereum Fund and Bitwise Ethereum ETF, which brought in $34.78 million and $13.27 million, respectively.

Capital flows into U.S. Ethereum ETFs. Source: Farside Investors

This market turnaround came after Powell’s remarks at the National Association for Business Economics Conference, where he suggested the Federal Reserve is nearing the end of its balance sheet reduction program and could prepare for potential rate cuts amid a weakening labor market.

Powell noted that the Fed may soon pause its quantitative tightening, adding that reserves are now “slightly above the level indicating sufficient liquidity.”

Source:: Bitcoin and Ethereum ETFs Soar After Fed Hints at Rate Cuts