Bitcoin and ether ETFs saw combined outflows as Fed projections signaled higher rates for longer, dampening rate-cut expectations.
US spot bitcoin and ether ETFs recorded combined outflows of $111 million on Wednesday, reversing recent inflows. Bitcoin funds lost $82 million, while ether funds shed $29 million, according to data. BlackRock’s IBIT and ARK’s ARKB saw outflows of $31 million and $44 million, respectively, with all ether funds finishing in the red.
The shift followed the Federal Reserve’s September meeting, where rates were held at 3.50%-3.75% but projections turned hawkish. The median policy rate forecast for 2026 rose to 3.8% from 3.4% in March, and nine of 18 officials now expect a hike this year. Markets priced a 60% chance of an October increase.
Crypto prices stalled as rate-cut hopes faded. Total market value remained near $2.26 trillion, while bitcoin traded around $63,800, retreating from its recent 11-day climb. The macro backdrop has shifted, with Fed hawkishness replacing earlier optimism over inflation easing.