Bitcoin ETFs Record $902 Million in Weekly Outflows As Investors React to Fed Policy and New US T...

Bitcoin ETFs saw $902 million in outflows as investors reacted to Fed uncertainty and new US trade tariffs.

Fidelity led the weekly outflows while BlackRock and Invesco were the only Bitcoin ETFs to gain investor inflows.

Ethereum ETFs also faced pressure with $795 million in outflows as risk sentiment weakened across crypto markets.

Spot Bitcoin exchange-traded funds in the U.S. recorded $902.5 million in outflows last week. This marked the end of a four-week inflow streak that previously saw $3.9 billion enter the market. The shift came amid uncertainty surrounding U.S. Federal Reserve policy and new tariff announcements.

Outflows were concentrated between September 22 and 26. Friday saw the heaviest single-day exit, with $418.25 million withdrawn. The decline follows rising caution among investors due to macroeconomic headwinds and quarter-end portfolio adjustments. In May, Trump urged the Federal Reserve to make immediate rate cuts, criticizing Powell’s timing and calling for faster economic support.

Fidelity’s FBTC led with $737.8 million in outflows. ARK 21Shares’ ARKB followed with $123.3 million, while Bitwise’s BITB lost $92.4 million. Grayscale, VanEck, and Franklin Templeton ETFs together posted $127.9 million in outflows.

Some Funds Still See Inflows Despite Broad Redemptions

While most funds saw redemptions, two ETFs remained resilient. BlackRock’s IBIT recorded inflows of $173.8 million. Last week, BlackRock’s $IBIT ETF bought 9,139 BTC in a week, outpacing miner supply, as Bitcoin netflows showed volatility and hashrate hit 1.02B TH/s.Invesco’s BTCO added $10 million over the same period. The remaining Bitcoin ETFs recorded no flows, indicating neutral investor activity.

Ethereum ETFs also struggled during the week. The nine ETH-based products posted $795.56 million in net outflows. This ended a two-week streak of positive flows. Like Bitcoin ETFs, these redemptions reflect broader investor caution.

Despite last week’s exits, spot Bitcoin funds have attracted $2.57 billion in inflows in September. This remains a significant improvement over August, which saw $751 million in outflows.

Macroeconomic Concerns Weigh on Market Sentiment

Investors reacted to fresh economic signals. The recent statement by the Federal Reserve reduced the possibility of additional rate reduction by 2025. Fed chairman Jerome Powell was on his guard. Other officials shared the necessity of patience in raising and lowering interest rates.

New trade tensions also influenced sentiment. New tariffs against major goods were announced by former U.S. President Donald Trump. These were pharmaceuticals, heavy trucks, home fixtures, and furniture. This was viewed by the markets as the possible cause of new global trade friction.

These developments led many investors to reduce exposure to risk assets. As a result, redemptions increased across Bitcoin and Ethereum funds.

Price Action Fails to Hold Key Levels

Bitcoin’s price briefly crossed $112,000 during early trading on September 29. It failed to stay above that level. The price pulled back to $111,675 by press time, gaining 2.2% in 24 hours.

Technical analysts observed a breakout from a descending broadening wedge on the hourly chart. The trend is generally an indication of a bullish reversal. Analysts, however, cautioned that Bitcoin needed to convincingly recover $112,000 to affirm an additional rise.

If it fails, a correction toward the $105,000 level may follow. Traders remain watchful for macro signals that could guide direction into the next quarter.