$470 Million Pulled From Bitcoin ETFs After Fed Rate Cut — Signs of Tightening Liquidity?
-
Written by
Simonas Brazionis - Updated 2025-10-30 13:44:46
Bitcoin ETFs saw massive outflows this week after the U.S. Federal Reserve reduced interest rates by 25 basis points. According to Farside Investors, spot Bitcoin ETFs in the U.S. lost $470 million on Wednesday — the largest single-day withdrawal in two weeks.
Table of content
Bitcoin ETFs See Biggest Withdrawals in Weeks
Fidelity’s FBTC led the redemptions with $164 million, followed by ARK Invest’s ARKB with $143 million. BlackRock’s IBIT saw $88 million in outflows, and Grayscale’s GBTC recorded $65 million. Bitwise’s BITB had a smaller $6 million exit.
The withdrawals wiped out gains from earlier in the week when Bitcoin ETFs attracted $149 million on Monday and another $202 million on Tuesday. Total cumulative inflows have now dropped to $61 billion, while assets under management fell to $149 billion — about 6.75% of Bitcoin’s total market cap.
Bitcoin Price Drops Despite Rate Cut
Bitcoin traded between $108,000 and $113,000 over the last 24 hours, according to CoinGecko. Traders had expected the rate cut to improve liquidity, but prices fell right after the announcement.
Analysts say the decision was already priced in, as investors had anticipated the 25-basis-point cut. Powell’s cautious tone about “data dependence” also suggested that more cuts may not happen soon.
Later in the day, Bitcoin recovered above $110,000 after Trump and Xi met to discuss easing trade tensions.
ETFs Still Hold Over 1.5 Million BTC
Despite the recent redemptions, ETFs remain major holders of Bitcoin. Data from Bitbo shows they collectively hold over 1.5 million BTC, worth about $169 billion — 7.3% of Bitcoin’s circulating supply.
BlackRock’s IBIT leads with 805,239 BTC, followed by Fidelity’s FBTC with 206,258 BTC and Grayscale’s GBTC with 172,122 BTC.
The Fed’s rate cut lowered the benchmark rate to 3.75%–4.0%. While expected, Powell’s comments left traders uncertain about future easing. U.S. stocks fluctuated, Treasury yields rose, and the dollar strengthened.
Investor Demand Remains Strong
Despite the midweek outflows, investor interest in Bitcoin ETFs remains high. CoinShares recently reported $931 million in weekly inflows into Bitcoin products — driven by lower inflation and expectations of further cuts.
Since early 2025, Bitcoin funds have attracted $9.4 billion in new investments. Year-to-date inflows stand at $30.2 billion, though still below last year’s $41.6 billion.
U.S. funds dominate with $843 million in recent inflows, followed by Germany with $502 million. Swiss-based products saw small outflows due to provider transitions rather than selling pressure.
Overall, strong inflows indicate that institutional adoption remains steady despite short-term market swings.
Blockchain Expert
