Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States saw inflows on Tuesday, as Federal Reserve Chairman Jerome Powell hinted that further interest rate cuts may be made before the end of the year.
Spot Bitcoin (BTC) ETFs saw net inflows of $102.58 million, rebounding from an outflow of $326 million the previous day. According to To data from SoSoValue. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the gains with inflows of $132.67 million, while BlackRock’s iShares Bitcoin Trust (IBIT) recorded modest outflows of $30.79 million.
Total net assets across all spot Bitcoin ETFs reached $153.55 billion, representing 6.82% of Bitcoin market capitalization, while cumulative inflows reached $62.55 billion.
Ethereum (ETH) ETFs reflected this shift, recording net inflows of $236.22 million following a sharp outflow of $428 million on Monday. Fidelity’s Ethereum Fund (FETH) topped the list 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.
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Powell hints at further interest rate cuts
Federal Reserve Chairman Jerome Powell indicated on Tuesday that the US central bank is nearing the end of its balance sheet reduction program and is preparing for possible interest rate cuts as the labor market weakens.
Speaking at the National Association for Business Economics conference, Powell He said The Fed may soon halt “quantitative tightening,” noting that reserves are “somewhat above the level” consistent with abundant liquidity.
“An October rate cut will send markets into a flight, with cryptocurrencies and ETFs seeing an influx of liquidity and sharper moves,” Vincent Liu, chief investment officer at Taiwan-based Kronos Research, told Cointelegraph.
“Expect digital assets to feel bullish as capital seeks efficiencies in a lower price environment,” he added.
Related to: Bitcoin ETFs maintain ‘Uptober’ momentum with $2.71 billion in weekly inflows
Cryptocurrency products remain resilient amid the recent collapse
As Cointelegraph reported, cryptocurrency investment products showed strong resilience during last week’s market turmoil, recording $3.17 billion in inflows despite a major flash crash caused by renewed tariff tensions between the US and China, according to CoinShares.
CoinShares said Monday that last Friday’s panic led to just $159 million in outflows, even as $20 billion of positions were liquidated across exchanges. The flexibility helped bring total flows for 2025 to $48.7 billion, already exceeding last year’s total.
“Easing tariff tensions between the US and China and renewed bear trading echoed in gold strength are fueling new demand for digital assets,” Liu noted.
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