TL;DR
- ETF Outflows: Spot Bitcoin ETFs recorded $363.1M in investor withdrawals, with Fidelity’s FBTC alone losing $276.7M, marking the largest single-day retreat in September and signaling heightened caution before Powell’s address.
- Ethereum Impact: Ethereum-based funds also turned negative, shedding $76M overall, led by Fidelity’s FETH, Bitwise’s ETHW, and BlackRock’s ETHA.
- Macro Pressure: A firm dollar, steady Treasury yields, and uncertainty over Fed policy direction fueled defensive positioning, leaving traders wary as Powell’s speech loomed.
Spot Bitcoin ETFs faced their sharpest setback of the month as investors pulled $363.1 million on September 23, just hours before Federal Reserve Chair Jerome Powell’s anticipated economic outlook speech. The exodus, led by major funds such as Fidelity’s FBTC, reflected mounting caution across risk assets as markets braced for signals on the pace of future interest rate cuts.
Major Outflows Hit Leading Bitcoin Funds
According to Farside Investors’ tracker, Fidelity’s FBTC bore the brunt of the withdrawals with $276.7 million in redemptions. ARK’s ARKB followed with $52.3 million in exits, while Grayscale’s GBTC lost $24.6 million. Smaller players were not spared, with VanEck’s HODL shedding $9.5 million. The combined $363.1 million outflow marked the largest single-day retreat from U.S. spot Bitcoin ETFs in September, underscoring investor unease ahead of Powell’s remarks.
Ethereum Funds Also Turn Negative
The wave of redemptions was not limited to Bitcoin ETFs. Ethereum ETFs also flipped into negative territory, recording $76 million in outflows. Fidelity’s FETH led the decline with $33.1 million in withdrawals, followed by Bitwise’s ETHW at $22.3 million and BlackRock’s ETHA at $15.1 million. The synchronized pullback across both Bitcoin and Ethereum funds highlighted a broader risk-off sentiment as traders sought clarity on monetary policy direction.
Macro Backdrop Fuels Defensive Tone
The cautious positioning came against a backdrop of mixed signals from Federal Reserve officials. Governor Stephen Miran has advocated for deeper rate cuts than many of his colleagues, leaving markets uncertain about the central bank’s next steps. Meanwhile, the dollar index hovered in the high-97s and the U.S. 10-year Treasury yield held near 4.15%, reinforcing a defensive stance across equities and digital assets alike.
Bitcoin and Ethereum Price Check
Despite the heavy ETF outflows, Bitcoin remained resilient, trading around $113,000 after a recent leverage flush. Ethereum hovered near the $4,200 support level. Traders are now closely watching Powell’s speech and upcoming inflation data for the next directional cue. Analysts caution that flows often lead prices in the short term, meaning continued defensive positioning could weigh on crypto markets until policy clarity emerges.
