US spot Bitcoin and Ether exchange-traded funds (ETFs) experienced inflows on Tuesday as Federal Reserve Chair Jerome Powell suggested that further rate cuts might occur before the end of the year.
Spot Bitcoin (BTC) ETFs attracted $102.58 million in net inflows, recovering from a $326 million outflow the previous day, according to SoSoValue data. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the inflows with $132.67 million, whereas BlackRock’s iShares Bitcoin Trust (IBIT) saw a slight outflow of $30.79 million.
Total net assets across all spot Bitcoin ETFs reached $153.55 billion, accounting for 6.82% of Bitcoin’s market capitalization, with cumulative inflows amounting to $62.55 billion.
Ether (ETH) ETFs mirrored this recovery, registering $236.22 million in net inflows after a significant $428 million outflow on Monday. Fidelity’s Ethereum Fund (FETH) led with $154.62 million, followed by Grayscale’s Ethereum Fund (ETH) and Bitwise’s Ethereum ETF (ETHW) at $34.78 million and $13.27 million, respectively.
Related: US spot Bitcoin, Ether ETFs shed $755M after crypto market crash
Powell hints at more rate cuts
Federal Reserve Chair Jerome Powell indicated on Tuesday that the US central bank is approaching the conclusion of its balance sheet reduction program and is ready for possible rate cuts as the labor market shows signs of weakness.
At the National Association for Business Economics conference, Powell stated that the Fed might soon halt its “quantitative tightening” as reserves are “somewhat above the level” indicative of ample liquidity.
“An October rate cut will result in markets taking flight, with crypto and ETFs experiencing liquidity flow and sharper movements,” said Vincent Liu, chief investment officer of Taiwan-based Kronos Research, in an interview with Cointelegraph.
“Expect digital assets to benefit as capital seeks efficiency in a softer rate environment,” he added.
Related: Bitcoin ETFs maintain ‘Uptober’ momentum with $2.71B in weekly inflows
Crypto products stay resilient amid recent crash
As reported by Cointelegraph, crypto investment products demonstrated notable resilience during the recent market turbulence, recording $3.17 billion in inflows despite a significant flash crash caused by renewed US-China tariff tensions, according to CoinShares.
CoinShares noted that last Friday’s panic resulted in only $159 million in outflows, despite $20 billion in positions being liquidated across exchanges. This resilience pushed total inflows for 2025 to $48.7 billion, already exceeding last year’s total.
“Easing US-China tariff tensions and a renewed debasement trade reflecting in gold’s strength are driving fresh demand for digital assets,” Liu pointed out.
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