- Bitcoin and Ethereum ETFs saw $520M in outflows as the Fed raised rates by 25 bps.
- BlackRock’s IBIT and ETHA lost $254M, accounting for 49% of combined ETF outflows.
- Cumulative net inflows remained positive at $54.57B for BTC ETFs and $13.15B for ETH ETFs.
U.S. spot Bitcoin and Ethereum ETFs recorded about $520 million in combined net outflows on September 16, as withdrawals accompanied the Federal Reserve’s interest rate increase. BlackRock’s Bitcoin and Ethereum funds accounted for nearly half that total, putting the largest redemptions at the center of questions about whether tighter monetary policy will prolong selling pressure.
The Fed raised its benchmark rate by 25 basis points to 3.75%–4.00%. Bitcoin also slipped toward the $75,000–$76,000 range despite weaker risk demand.
BlackRock Funds Lead Crypto ETF Outflows
Spot Bitcoin ETFs lost $295.98 million during the session, while Ethereum ETFs recorded $224.11 million in net outflows, according to the SoSoValue figures.
BlackRock’s IBIT led Bitcoin withdrawals with $144 million. Its Ethereum fund, ETHA, recorded approximately $110 million in redemptions. Together, those two funds accounted for roughly $254 million, or 49% of combined withdrawals across both categories.
Other issuers also recorded withdrawals. Ark Invest’s ARKB lost $84.4 million, while Fidelity’s FBTC shed $52.7 million. On the Ethereum side, Fidelity’s FETH registered $55.6 million in withdrawals. Still, the selling did not extend across every Bitcoin product. Morgan Stanley’s MSBT attracted $3.47 million in net inflows, moving against the broader daily trend.
Withdrawals Follow August Recovery
The latest Bitcoin ETF outflows followed an uneven stretch for investor demand. SoSoValue’s chart shows withdrawals in the range of billions during May and June, before inflows recovered in July and August. By September, however, flows reversed, with total outflows of $278.85M.
Despite the latest withdrawals, cumulative net inflows stood at $54.57 billion for Bitcoin ETFs and $13.15 billion for Ethereum ETFs. Daily redemptions totaled about 0.31% and 1.48% of their respective reported assets.
The withdrawals point to short-term caution as higher rates weigh on risk appetite, though strong cumulative inflows show institutional interest remains intact. The next direction will depend on whether tighter policy continues to pressure crypto markets or stabilizes after the initial reaction.
Related: Bitcoin ETF Outflows, Ethereum Inflows: Are Indian Traders Missing a BTC-to-ETH Rotation?
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