Bitcoin and Ethereum ETFs Bleed $591 Million Ahead of Fed Decision

Bitcoin and Ethereum ETFs experienced significant outflows ahead of Wednesday's Federal Reserve decision. According to data from SoSoValue, Bitcoin ETFs led the retreat with $450.33 million in net outflows, their largest single-day withdrawal since June 25.

The combined net assets of these funds now sit at $95.72 billion, despite cumulative net inflows totaling $54.86 billion. Meanwhile, Ethereum ETFs posted their largest single-day outflow in 155 trading sessions, with BlackRock's ETHA driving most of the damage at $97.97 million.

The Federal Reserve decision is expected to be a significant catalyst for market movement, with nearly every major investment bank predicting at least one more interest rate hike before year-end. Robin Brooks, a senior fellow at the Brookings Institution, warned that Chair Kevin Warsh faces a 'nightmare' in trying to deliver a message hawkish enough to match market expectations.

This could lead to a weaker US dollar, which would typically support Bitcoin and gold due to their negative correlation with the US Dollar Index. As of Wednesday, Bitcoin holds around $76,000, while Ethereum remains at $2,402.