Bitcoin News Today: Investors Flock to Bitcoin ETPs as Safe-Haven Bets Amid Fed Uncertainty

Investor optimism surged last week as cryptocurrency exchange-traded products (ETPs), according to Cointelegraph, saw a net inflow of $921 million, reversing prior outflows and signaling renewed confidence in potential U.S. Federal Reserve rate cuts. The influx was driven by Bitcoin (BTC) investment vehicles, which captured $931 million in inflows, while Ethereum (ETH) ETPs faced $169 million in outflows—the first in five weeks. The shift reflects growing anticipation of monetary easing following lower-than-expected U.S. inflation data and a lack of clarity from the government shutdown, which delayed key economic releases.

Bitcoin's dominance in the inflow trend underscored its role as a safe-haven asset. The $931 million in weekly inflows brought total inflows since the Fed began cutting rates in September to $9.4 billion, according to CoinShares. Year-to-date, Bitcoin ETPs have attracted $30.2 billion, though this remains 38% below last year's $41.6 billion. James Butterfill, CoinShares' head of research, attributed the rebound to the CPI data, which "restored anticipation of further rate cuts" amid macroeconomic uncertainty, Cointelegraph reported.

Ethereum, meanwhile, faced its first outflows in five weeks, with consistent daily redemptions totaling $169 million. Despite this, leveraged ETH ETPs remained popular, and the asset's year-to-date inflows stand at $14.034 billion. Analysts noted that Ethereum's performance contrasts with Bitcoin's resilience, as investors rotate toward the more established cryptocurrency, according to Coinotag.

Regional dynamics highlighted the U.S. and Germany as key drivers of inflows. American investors contributed $843 million, with BlackRock's Bitcoin ETP alone attracting $324 million. Germany added $502 million, one of its largest weekly inflows on record, while Switzerland saw $359 million in outflows, primarily due to asset transfers between providers rather than selling pressure, Live Bitcoin News reported.

Altcoin ETPs, including Solana (SOL) and XRP, saw mixed results. Solana inflows fell 81% week-on-week to $29.4 million, while XRP added $84.3 million. The slowdown was attributed to anticipation of U.S. spot ETF launches, which could reshape market dynamics, Cointelegraph noted.

Total assets under management in crypto funds now stand at $229 billion, with $48.9 billion in year-to-date inflows. Butterfill emphasized that global ETP trading volumes hit $39 billion last week, surpassing the 2025 average of $28 billion, indicating robust liquidity and institutional interest, Coinotag reported.

Market participants remain focused on the Fed's policy trajectory, with expectations of a 25-basis-point rate cut at the October 29 meeting hovering near 97%. T. Rowe Price's filing for an actively managed crypto ETF, which would hold 5–15 cryptocurrencies, signals further institutional adoption. As the sector awaits regulatory clarity and economic updates, Bitcoin's continued inflows suggest it remains the preferred hedge against macroeconomic volatility, as BeInCrypto reported.