Bitcoin ETFs Surge as Ethereum ETFs Bleed Amid Trump Tariffs, Fed Uncertainty

Trump’s tariff policies and U.S. macroeconomic data have intensified volatility in cryptocurrency and ETF markets, with Bitcoin and Ethereum exchange-traded funds (ETFs) experiencing divergent performance. On September 24, Bitcoin ETFs saw a $241 million inflow after two days of outflows, reversing a $363 million exodus on September 22 and a $103.6 million outflow on September 23Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million^[2]. BlackRock’s IBIT led the inflows with $128.9 million, while Fidelity’s FBTC added $29.7 millionBitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million^[2]. In contrast, Ethereum ETFs continued to bleed, recording $79.36 million in outflows on September 24, marking three consecutive days of redemptionsBitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million^[2]. Fidelity’s FETH accounted for $33.26 million in outflows, and BlackRock’s ETHA lost $26.47 millionBitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million^[2].

The divergence reflects institutional preferences for Bitcoin over Ethereum. Bitcoin ETFs now hold $147.2 billion in net assets, representing 6.6% of the cryptocurrency’s market cap, while Ethereum ETFs hold $27.5 billion, or 5.45% of ETH’s market capBitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid …^[1]. Analysts attribute Bitcoin’s resilience to coordinated institutional buying after recent selling pressure created attractive entry points, whereas Ethereum faces ongoing concerns about regulatory uncertainty and network competitionBitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million^[2].

Federal Reserve policy and inflation data have further complicated market dynamics. The Fed’s hawkish tone following its September 18 rate cut—reducing the benchmark rate by 25 basis points but signaling fewer future cuts than expected—triggered a $51.28 million outflow from Bitcoin ETFsBitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers …^[3]. Markets interpreted the move as a signal of persistent inflation risks, with the Fed’s updated projections indicating only two additional 2025 rate cuts and fewer in 2026Bitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers …^[3]. This uncertainty has pressured risk assets, with Bitcoin and Ethereum prices edging higher but remaining volatile.

Upcoming macroeconomic data, including the September 26 PCE inflation report, will be critical for market direction. Analysts expect headline PCE to rise to 2.7% year-over-year, slightly above the 2.6% previous reading, while core PCE is projected to remain at 2.9%. A hotter-than-expected report could delay Fed rate cuts, which are currently priced in at a 91.9% probability for October and 78.8% for December. Trump’s advocacy for deeper cuts amid his tariff-driven inflationary pressures has added political uncertainty, complicating the Fed’s policy outlook.

The broader ETF landscape is also shifting. U.S. ETFs hit a record $12.19 trillion in assets by August 2025, with crypto-linked ETFs now a significant component. BlackRock’s Bitcoin ETFs alone generated $218 million in annual revenue, underscoring the growing institutional adoption of digital assetsBitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid …^[1]. However, the surge in ETFs has raised questions about market sensitivity to central bank policy. With inflows increasingly driven by passive allocations in retirement accounts and target-date funds, analysts suggest markets may be less responsive to Fed signals.

Despite short-term volatility, long-term optimism persists. Onchain Foundation’s Leon Waidmann noted that BlackRock’s crypto ETFs have transitioned from experimentation to a core revenue stream, setting a benchmark for institutional adoptionBitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid …^[1]. Bloomberg’s Eric Balchunas highlighted crypto ETFs’ structural advantages—low costs, yield potential, and regulatory clarity—as key drivers for sustained growthBitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid …^[1]. Meanwhile, Bitcoin’s institutional accumulation and Ethereum’s regulatory challenges remain pivotal factors for future price actionPCE Inflation Data Release Today: Are Prices Cool or Sticky?^[4].