Bitcoin, Ethereum ETF Recap: What Was US Investors’ Strategy During Fed’s Rate-Cut Week?
The spot Ethereum ETFs have seen two consecutive days of net inflows.
It was a big week for financial markets and the global economy as the central bank of the world’s strongest economy pivoted from its monetary policy and reduced the key interest rates by 0.5%.
As such, it’s worth reviewing how local investors behaved when it comes down to their interactions with spot Bitcoin and Ethereum ETFs.
BTC ETFs on the Inflow Side
CryptoPotato reported on Wednesday that US investors were on a shopping spree for the spot Bitcoin ETFs. In the four trading days leading to the FOMC meeting, the net inflows to the 11 financial vehicles were just over $500 million.
Their behavior changed on the day of the rate cuts as the numbers turned red, with $52.7 million in net outflows . However, they reversed their strategy once again on Thursday and Friday, with $158.3 million and $92 million in net inflows, respectively.
On a weekly scale, this means that there were more withdrawals only on Wednesday. Overall, the total net inflows for the week stood at $397.2 million.
What’s particularly interesting about the past few weeks is the lack of actual interest in the largest Bitcoin ETF – BlackRock’s IBIT. It has seen only one day of positive flows since August 26, which occurred on September 15. There have been two days of net outflows within the same timeframe, while all 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 the past few weeks.
Ethereum ETFs See Positive Streak
The spot Ethereum ETFs have failed to attract investors’ attention in the two months they have traded on US exchanges. However, there have been some minor positive signs in the past couple of days.
FarSide shows two consecutive days of net inflows – $5.2 million on Thursday and $2.9 million on Friday. Nevertheless, these numbers are still quite insignificant and the overall weekly figure is in the red.
The net outflows stood at $9.4 million on Monday, $15.1 million on Tuesday, and $9.8 million on Wednesday. As such, the Fed’s rate-cut week ended with $26.2 million in net outflows for the Ethereum ETFs.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Analysis Company: Spot ETF Excitement May Occur in a Surprise Altcoin in 2025! – No ETF Application Has Been Made to Date!
Wintermute analysts said that in 2025, a fundamental asset manager will launch a memecoin ETF.
VIPBitget VIP Weekly Research Insights
The U.S. 10-Year Treasury yield has been rising recently, with the U.S. Dollar Index surpassing the 110 mark. The upcoming release of CPI data and the uncertainty surrounding Trump's inauguration next week could further heighten market volatility. Risk aversion is evident in the market, as global risk assets have shown sluggish performance. In this environment of tense market sentiment and impending macroeconomic data releases, we recommend that investors reduce leverage, manage risks carefully, and set aside funds for potential buying opportunities. This edition highlights some of Bitget's token launch promotions and on-chain Earn products based on USDT/USDC, BTC, and SOL, offering investors a wider range of options.
Cardano’s 22% Weekly Surge Locks in the $1 Key Zone
Cardano (ADA) has broken out of a symmetrical triangle with a 22% surge, pushing above the critical $1 resistance. Bullish indicators suggest more upside potential, but a failed retest could send prices lower.
Bitcoin price slips 3%, ignores US jobs beat as XRP sees all-time high