Bitcoin ETFs post $470M outflows as Fed cuts rates, Trump talks trade

Wednesday Sees Major Bitcoin ETF Outflows

US-listed spot Bitcoin exchange-traded funds (ETFs) shed $470 million on Wednesday, as the price of Bitcoin briefly fell to $108,000 before recovering, according to data from Farside Investors. Fidelity’s FBTC led the exodus with $164 million, followed by ARK Invest’s ARKB, which saw a pullback of $143 million. BlackRock’s IBIT rounded out the top three with $88 million in outflows. Grayscale’s GBTC also recorded $65 million in outflows, while Bitwise’s Bitcoin ETF BITB saw a relatively minor loss of $6 million. This drawdown has come after a few days of steady gains, with $149 million on Monday and over $202 million on Tuesday.

United States, Bitcoin ETF, ETF — Bitcoin ETFs have suffered a red day marked by large outflows. Source: Farside Investors

The outflows have also reduced cumulative net inflows to $61 billion, and total assets under management have declined to $149 billion, representing 6.75% of Bitcoin’s market capitalization, according to crypto investment research platform SoSoValue.

Bitcoin Price Reacts to Economic and Geopolitical Factors

The price of Bitcoin has been drifting between $108,201 and $113,567 for the last 24 hours, according to CoinGecko. It fell despite the US Federal Reserve decision to cut interest rates by 25 basis points. However, it appears to have gained after a meeting between US President Donald Trump and Chinese President Xi Jinping, where they discussed trade tensions between the two countries.

Analysts have previously indicated to Cointelegraph that flows into ETFs are linked to the token’s price, with a rally in early October stemming from large inflows into these investment vehicles.

ETFs Remain Significant Holders of Bitcoin

Despite the recent outflows, ETFs collectively hold more than 1.5 million Bitcoin, valued at $169 billion. This represents 7.3% of the total supply, according to Bitbo. BlackRock’s IBIT leads the pack with 805,239 Bitcoin. Fidelity’s ETF is in second place with 206,258 Bitcoin, and Grayscale’s GBTC holds the third-largest amount of tokens with 172,122.

Michael Saylor, the co-founder of MicroStrategy, has expressed optimism regarding Bitcoin's future price trajectory. He made a bullish forecast on Monday, predicting that Bitcoin will still reach $150,000 by the end of 2025, citing positive developments within the cryptocurrency space.