US spot Bitcoin and Ether exchange-traded funds (ETFs) experienced significant inflows on Tuesday following comments from Federal Reserve Chair Jerome Powell suggesting potential rate cuts before the year’s end.
Spot Bitcoin (BTC) ETFs recorded $102.58 million in net inflows, recovering from a $326 million outflow the previous day, according to data from SoSoValue. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the way with $132.67 million in inflows, whereas BlackRock’s iShares Bitcoin Trust (IBIT) saw a small outflow of $30.79 million.
The total net assets for all spot Bitcoin ETFs reached $153.55 billion, which is 6.82% of Bitcoin’s market capitalization, with cumulative inflows amounting to $62.55 billion.
Ether (ETH) ETFs also reflected a similar recovery, accumulating $236.22 million in net inflows after a sharp outflow of $428 million on Monday. Fidelity’s Ethereum Fund (FETH) was at the top with $154.62 million, followed by Grayscale’s Ethereum Fund (ETH) and Bitwise’s Ethereum ETF (ETHW) with $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
On Tuesday, Federal Reserve Chair Jerome Powell indicated that the US central bank is approaching the end of its balance sheet reduction plan and is gearing up for possible rate cuts as labor market conditions weaken.
During his address at the National Association for Business Economics conference, Powell stated that the Fed may soon halt its “quantitative tightening” approach, noting that reserves are “somewhat above the level” that signals ample liquidity.
“If rates are cut in October, markets will likely react strongly, resulting in liquidity flow to crypto and ETFs and more significant market movements,” Vincent Liu, chief investment officer at Taiwan’s Kronos Research, shared with Cointelegraph.
“Digital assets are expected to benefit as capital seeks more efficient opportunities 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 strong resilience during last week’s market volatility, attracting $3.17 billion in inflows despite a major flash crash spurred by renewed US-China tariff concerns, as per CoinShares.
CoinShares noted that last Friday’s panic only resulted in $159 million in outflows, even amidst $20 billion in liquidated positions across exchanges. This resilience has contributed to total inflows for 2025 reaching $48.7 billion, already surpassing last year’s count.
“Decreasing US-China tariff tensions and a renewed focus on debasement, evidenced by gold’s strength, are driving newfound interest in digital assets,” Liu remarked.
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