Introduction
US spot Bitcoin and Ether ETFs have dramatically reversed their recent outflow trend, recording significant inflows as Federal Reserve Chair Jerome Powell’s暗示 of potential rate cuts before year-end reinvigorated investor confidence in crypto assets. The $102.58 million net inflow for Bitcoin ETFs marks a stark turnaround from the previous day’s $326 million outflow, signaling renewed institutional interest following market turbulence.
Key Points
- Fidelity's FBTC led inflows with $132.67 million while BlackRock's IBIT saw $30.79 million outflows
- Total spot Bitcoin ETF assets reached $153.55 billion, accounting for 6.82% of Bitcoin's market cap
- Cumulative inflows across all spot Bitcoin ETFs now stand at $62.55 billion since their introduction
Fed Policy Shift Sparks Crypto ETF Revival
The sudden reversal in US spot Bitcoin and Ether ETF flows directly coincided with Federal Reserve Chair Jerome Powell’s暗示 that additional rate cuts could materialize before the end of the year. This monetary policy outlook has traditionally served as a catalyst for risk assets, including cryptocurrencies, as lower interest rates reduce the opportunity cost of holding non-yielding digital assets. The timing proved crucial, coming just as the crypto market was recovering from a significant downturn that had triggered substantial ETF outflows.
According to data from SoSoValue, spot Bitcoin ETFs recorded $102.58 million in net inflows on Tuesday, representing a dramatic $428.58 million swing from the previous day’s $326 million outflow. This rapid shift underscores how sensitive crypto investment products remain to macroeconomic signals from the Federal Reserve. The data confirms that institutional investors are closely monitoring central bank communications for cues about when to re-enter or increase exposure to digital asset markets.
Fidelity Leads Recovery While BlackRock Lags
The inflow distribution revealed significant divergence among major ETF providers. Fidelity’s Wise Origin Bitcoin Fund (FBTC) emerged as the clear leader, attracting $132.67 million in fresh capital and driving much of the overall positive flow. This strong performance suggests that Fidelity’s product continues to resonate with investors seeking Bitcoin exposure through established financial institutions.
In contrast, BlackRock’s iShares Bitcoin Trust (IBIT) experienced a modest outflow of $30.79 million, marking a rare instance of negative flow for the typically dominant fund. The divergence between Fidelity and BlackRock’s performance highlights how investor preferences can shift rapidly within the competitive spot Bitcoin ETF landscape, even among the industry’s largest and most established providers.
Market Share and Cumulative Growth Metrics
The recovery pushed total net assets across all spot Bitcoin ETFs to $153.55 billion, representing approximately 6.82% of Bitcoin’s total market capitalization. This substantial market share demonstrates how quickly these investment vehicles have become integral components of the broader cryptocurrency ecosystem since their approval earlier this year.
Cumulative inflows across all spot Bitcoin ETFs now stand at $62.55 billion, reflecting sustained institutional adoption despite periodic market volatility. The consistent growth in these figures underscores the structural demand for regulated cryptocurrency exposure among traditional investors, who appear increasingly comfortable allocating capital to digital assets through familiar investment vehicles.
📎 Related coverage from: cointelegraph.com