Bitcoin and Ethereum ETFs Recover Strongly as Rate-Cut Hopes Rise
After several days of heavy outflows, U.S. Bitcoin and Ethereum ETFs saw renewed investor interest on Tuesday, fueled by growing expectations that the Federal Reserve will begin cutting interest rates before the end of the year.
The shift in sentiment followed comments from Fed Chair Jerome Powell suggesting that monetary tightening may soon end, sparking optimism across both traditional and crypto markets.
Data from Farside Investors shows that spot Bitcoin funds pulled in over $100 million in new capital, reversing the previous day’s steep withdrawals. Fidelity’s Wise Origin Bitcoin Fund led the recovery with more than $130 million in inflows, while BlackRock’s IBIT saw minor redemptions. Altogether, Bitcoin ETFs now hold roughly $153 billion in assets — accounting for almost 7% of Bitcoin’s total market capitalization.
Ethereum products mirrored the rebound. Spot Ether ETFs attracted roughly $236 million in inflows after a sharp pullback the day before. Fidelity once again dominated with more than half of that total, followed by Grayscale and Bitwise. The turnaround indicates that institutional appetite for crypto exposure remains intact, despite last week’s volatility.
Powell’s speech at the National Association for Business Economics conference was the clear catalyst. The Fed chief said the central bank is nearing the end of its balance sheet runoff and hinted at upcoming rate cuts as the labor market softens. That message was enough to reignite the “risk-on” narrative that has historically benefited crypto assets.
“Markets are already preparing for an October rate cut,” said Vincent Liu, CIO at Kronos Research. “If that happens, capital will flow back into assets like Bitcoin and Ethereum where liquidity and volatility can work in investors’ favor.”
The renewed inflows come just days after one of the largest market shakeups of the year, when U.S.-China tariff tensions triggered a $20 billion liquidation cascade. Yet, despite the selloff, CoinShares data shows digital asset products still drew $3.17 billion in inflows last week, pushing 2025’s total to nearly $49 billion — already higher than all of last year.
With macro headwinds easing and ETF activity strengthening, analysts suggest the final quarter could see a resurgence in institutional demand. If Powell’s policy shift becomes official, crypto ETFs may once again serve as a key vehicle for capital rotation into Bitcoin and Ethereum — just as markets gear up for a potential year-end rally.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
