Bitcoin and Ether ETFs Surge After Powell Hints at Rate Reductions

U.S. spot Bitcoin and Ether exchange-traded funds (ETFs) experienced inflows on Tuesday as Federal Reserve Chair Jerome Powell suggested more rate cuts might occur before the end of the year.

Spot Bitcoin (BTC) ETFs recorded $102.58 million in net inflows, bouncing back from a $326 million outflow the previous day, according to data from SoSoValue. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the charge with $132.67 million in inflows, while BlackRock’s iShares Bitcoin Trust (IBIT) saw a slight outflow of $30.79 million.

The total net assets for all spot Bitcoin ETFs reached $153.55 billion, accounting for 6.82% of Bitcoin’s market capitalization, with cumulative inflows totaling $62.55 billion.

Ether (ETH) ETFs mirrored this recovery, amassing $236.22 million in net inflows after Monday’s notable $428 million outflow. Fidelity’s Ethereum Fund (FETH) led 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: U.S. spot Bitcoin, Ether ETFs lost $755M after the crypto market crash

Powell hints at more rate cuts

Federal Reserve Chair Jerome Powell indicated on Tuesday that the U.S. central bank is close to concluding its balance sheet reduction program and is preparing for possible rate cuts as employment conditions weaken.

At the National Association for Business Economics conference, Powell stated the Fed may soon halt its “quantitative tightening” process, pointing out that reserves are “somewhat above the level” conducive to ample liquidity.

“An October rate cut will send markets soaring, with crypto and ETFs experiencing liquidity influx and sharper movements,” noted Vincent Liu, chief investment officer at Taiwan-based Kronos Research, in comments to Cointelegraph.

“Digital assets are likely to benefit as capital seeks efficiency in a more favorable rate environment,” he added.

Related: Bitcoin ETFs maintain ‘Uptober’ momentum with $2.71B in weekly inflows

Crypto products remain resilient amid recent crash

Citing Cointelegraph, crypto investment products demonstrated remarkable resilience last week amidst market turmoil, netting $3.17 billion in inflows despite a significant flash crash sparked by renewed U.S.-China tariff tensions, according to CoinShares.

According to CoinShares, last Friday’s panic resulted in only $159 million in outflows, despite $20 billion in positions being liquidated across exchanges. This resilience propelled total inflows for 2025 to $48.7 billion, already exceeding last year’s total.