Fed Rate Hike Triggers $520M Bitcoin and Ethereum ETF Outflows

Bitcoin and Ethereum ETFs saw significant outflows following the Federal Reserve's interest rate hike. The Fed raised its benchmark rate by 25 basis points to 3.75%, 4.00%. This move weighed on risk appetite, leading to $520 million in combined net outflows across U.S. spot Bitcoin and Ethereum ETFs on September 16.

BlackRock's IBIT and ETHA funds were among the largest redemptions, accounting for nearly half of the total outflows at $254 million. The funds lost $144 million and $110 million, respectively. Other issuers like Ark Invest's ARKB and Fidelity's FBTC also recorded withdrawals.

Despite the latest outflows, cumulative net inflows remained positive at $54.57 billion for Bitcoin ETFs and $13.15 billion for Ethereum ETFs. The withdrawals suggest short-term caution but do not indicate a loss of institutional interest in these assets.