Crypto Funds Suffer $520M Outflow Amid Rate Hike Fears

On September 16, U.S.-based spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced significant outflows. According to finalized Farside data cited by FinanceFeeds on September 17, Bitcoin ETFs posted $295.9 million in net outflows, while Ether ETFs saw $224.1 million leave their funds.

The combined total of these outflows reached about $520 million. IBIT led the way for Bitcoin withdrawals with a staggering $144.1 million, followed closely by ETHA with $110 million in Ether withdrawals. Interestingly, MSBT was the sole Bitcoin ETF to experience inflows, reporting around $3.5 million.

The context behind these outflows is intriguing, coming as it does after the Federal Reserve's decision to raise interest rates by 25 basis points to a 3.75%-4.00% target range and the Senate's failed CLARITY Act cloture vote earlier in the week.