U.S. spot Bitcoin and Ether ETFs saw renewed inflows on Tuesday after Federal Reserve Chair Jerome Powell suggested that interest rate reductions could arrive before the end of 2025.
According to SoSoValue data, spot Bitcoin ETFs recorded $102.58 million in net inflows, rebounding from a $326 million outflow just a day prior. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the recovery with $132.67 million entering the fund, while BlackRock’s iShares Bitcoin Trust (IBIT) experienced a smaller outflow of $30.79 million.
In total, U.S. spot Bitcoin ETFs now hold $153.55 billion in assets under management, representing roughly 6.82% of Bitcoin’s total market capitalization. Cumulative inflows across all funds have reached $62.55 billion.
Ether ETFs also turned positive, posting $236.22 million in net inflows after Monday’s $428 million withdrawal. Fidelity’s Ethereum Fund (FETH) attracted $154.62 million, while Grayscale’s Ethereum Fund and Bitwise’s Ethereum ETF followed with $34.78 million and $13.27 million, respectively.
Powell signals potential monetary easing
Speaking at the National Association for Business Economics conference, Powell indicated that the Federal Reserve may soon wrap up its balance sheet reduction program and move toward rate cuts as the U.S. labor market continues to soften.
He noted that the current level of reserves is “somewhat above” what’s needed for sufficient liquidity, implying that quantitative tightening could be nearing its conclusion.
“A rate cut in October would likely ignite risk-on sentiment, pushing liquidity toward crypto and ETFs,” said Vincent Liu, CIO at Taiwan-based Kronos Research. “Digital assets tend to outperform when the monetary environment turns looser,” he added.
Crypto products show strength despite market turmoil
Even amid last week’s market volatility — sparked by renewed U.S.-China tariff tensions — crypto investment products displayed impressive resilience. According to CoinShares, total inflows reached $3.17 billion for the week, despite a massive liquidation wave that erased around $20 billion in positions across exchanges.
Outflows during the Friday crash were limited to $159 million, signaling investor confidence. Year-to-date inflows have already hit $48.7 billion, surpassing the total seen in 2024.
“Reduced U.S.-China tensions and a growing appetite for hedge assets, as seen in gold’s rally, are helping renew investor interest in digital currencies,” Liu explained.
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