Bitcoin and Ethereum ETFs See Outflows Despite Price Pumps, While ARKB Leads the Adverse Trend

In the days ahead of the highly anticipated US FOMC meeting, when the central bank was expected to lower the interest rates, local investors were on a shopping spree for spot Bitcoin ETFs.

As the US FOMC meeting approached, local investors were actively purchasing spot Bitcoin ETFs in anticipation of an interest rate reduction by the central bank. However, the scenario played out differently on the day of the meeting.

CryptoPotato reported earlier this week on the remarkable string of four trading days leading up to the FOMC meeting. As mentioned, a total of 11 spot Bitcoin ETFs received net inflows of over $0.5 billion from September 12 to September 17.

The scene shifted on Thursday. Despite the Federal Reserve cutting the key interest rates by 50 basis points, which was higher than the broad expectations for a 0.25% reduction, the financial vehicles saw net outflows of $52.7 million for the day.

Ark Invest's ARKB led the downturn with net withdrawals of $43.4 million. Grayscale's initial and largest fund (GBTC) followed with $8.1 million, and BITB trailed behind with $3.9 million. The remaining funds saw little to no actual flows, except for Grayscale's smaller and newer fund (BTC), which had net inflows of $2.7 million.

BlackRock's IBIT remains the largest of the group, with AUM of nearly $21 billion. However, there has been only one day of positive flow in the past three weeks.

In contrast, Fidelity's FBTC enjoyed a favorable streak of seven consecutive days of net inflows before pausing on Wednesday.

Consistency in Ethereum ETFs

While the spot Bitcoin ETFs enjoyed over $0.5 billion in net inflows in the days leading up to the Fed's policy pivot, the Ethereum counterparts did not share the same fate. Withdrawals stood at $15.1 million on Tuesday and $9.4 million on Monday.

Their situation did not improve much on Thursday as investors withdrew a total of $9.8 million from the ETH-related products. Grayscale's ETHE led the outflows once again, with a staggering $14.7 million in net outflows.

The only positive contribution came from BlackRock's EHTA, which saw net inflows of $4.9 million. Notably, ETHA is the only new financial vehicle tracking Ethereum's performance that has crossed the coveted $1 billion mark in AUM since its launch a couple of months ago.

Despite the negative days for the Bitcoin and Ethereum ETFs, the prices of the underlying assets soared to multi-week highs. BTC approached $63,000 earlier on Friday, while ETH came close to $2,450.

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