Bitcoin and ether ETFs face $111m outflows as Fed kills rate-cut hopes
Bitcoin and ether ETFs lost $111 million combined after the Federal Reserve turned hawkish and removed rate-cut expectations. On Wednesday, spot bitcoin funds outflowed $82 million and ether funds outflowed $29 million, with bitcoin outflows broad: even BlackRock’s IBIT shed $31 million and ARKB fell $44 million. All ether funds finished in the red.
Price action and flows diverged. Crypto market value stayed near $2.26 trillion, while bitcoin eased to around $63,800 after a roughly 11-day rally stalled near $64,000.
Despite ETF selling, whales accumulated. Santiment data shows addresses holding 1,000+ BTC controlled about 7.17 million coins, the highest since March 14. The long-term holder picture also remains supportive, but accumulation is not directionally certain: the whale share of total supply is ~35.8%, below its December peak.
Traders now focus on the next macro catalyst (rate-hike odds, with an October hike probability near 60%) and whether the Bitcoin and ether ETFs bid returns.
Bearish
The news is bearish for near-term trading because the primary institutional channel—spot Bitcoin and ether ETFs—turned from inflows to sustained outflows immediately after the Fed shifted hawkish. When $111 million of combined ETF outflows hit, it tends to pressure spot demand and can cap rallies, especially when price is already stalling around resistance ($64,000 area for BTC).
However, the article also flags a counter-signal: whale accumulation. Historically, whale/balance accumulation during ETF outflows can create “tug of war” conditions—selling pressure from ETFs versus longer-horizon accumulation by large holders. This often leads to choppy consolidation rather than a clean trend.
Short term, traders should watch whether ETF outflows persist on subsequent sessions and whether BTC holds the $63.8k–$64k zone. A renewed ETF bid would likely stabilize price quickly. Long term, if rate-cut expectations return (or markets re-price Fed policy toward cuts), ETF flows could improve and support another leg higher; if the hawkish path remains the base case (higher-for-longer), ETF demand may stay weak.
Similar market setups—macro disappointment leading to ETF outflows, while on-chain holders accumulate—typically resolve into either (1) range-bound price action until macro expectations soften, or (2) a deeper drawdown if ETF outflows broaden again.