Bitcoin and Ether ETFs See $111 Million in Outflows as Rate-Cut Hopes Fade

U.S. spot bitcoin and ether exchange-traded funds moved back into outflows on Wednesday, losing a combined $111 million, according to CoinDesk’s report citing SoSoValue data. Bitcoin funds shed $82 million, while ether funds lost $29 million as the market’s recent recovery showed signs of losing momentum.

The outflows matter because spot ETFs have become a key gauge of institutional demand for crypto exposure. CoinDesk noted that the retreat was broad: BlackRock’s IBIT recorded $31 million in outflows, ARKB lost $44 million, and every ether fund ended the session in negative territory.

The pressure followed the Federal Reserve’s latest policy meeting. Rates were held at 3.50% to 3.75%, but updated projections signaled a more hawkish path, with the median forecast showing the policy rate ending 2026 at 3.8%, up from 3.4% in March.

That change weakened the rate-cut narrative that had supported the recent bounce in digital assets. CoinDesk reported that nine of 18 Fed officials penciled in a hike this year, while markets placed the odds of an increase as soon as October near 60%.

Crypto prices stalled alongside the ETF flows. Total crypto market value has remained near $2.26 trillion since Tuesday’s close, while bitcoin eased to around $63,800, sitting in the middle of its recent 11-day climb, according to CoinDesk data. The next market focus is whether ETF demand returns and how expectations for a possible October rate hike evolve.