Investors Flock to Bitcoin ETFs as Fed Rate Cut Hopes Rise, Ethereum Lags

Bitcoin and Ethereum ETFs saw a combined $1.44 billion in net inflows during the week ending September 10, 2025, signaling renewed institutional and retail investor confidence in the crypto market. Bitcoin ETFs led the charge, with $757 million in net inflows on September 10 alone, the strongest single-day inflow since July. Fidelity’s FBTC and BlackRock’s IBIT dominated the flow, capturing $299 million and $211 million, respectively. Ethereum ETFs also reversed recent outflows, adding $171 million in net inflows for the day, driven by BlackRock’s ETHA ($74.5 million) and Fidelity’s FETH ($49.5 million) BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].

The inflows coincided with a price rebound for both cryptocurrencies. Bitcoin’s price surpassed $114,000, while Ethereum climbed above $4,400, driven by anticipation of the Federal Reserve’s upcoming policy meeting. Polymarket data showed an 82% probability of a 25-basis-point rate cut, which analysts suggest could catalyze further inflows as capital shifts from money market funds into risk assets. Sustained ETF demand is seen as a structural bid for Bitcoin, echoing its earlier 2025 rallies BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].

Monthly data highlights the scale of the rebound. Bitcoin ETFs added $1.39 billion in September, offsetting August’s $751 million in redemptions. Over six months, Bitcoin ETF inflows have remained positive, peaking at $6.02 billion in July. In contrast, Ethereum ETFs posted their first monthly outflow in September, losing $669 million after attracting $9.3 billion in June, July, and August. This divergence reflects Ethereum’s weaker performance in 2025 compared to Bitcoin’s sustained institutional adoption BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].

The return of ETF demand is being positioned ahead of the Fed’s September meeting, with market participants emphasizing the potential impact of trillions of dollars in money market funds rotating into risk assets. While Bitcoin’s ETF inflows have been a consistent tailwind, Ethereum’s mixed performance underscores the need for catalysts to reignite investor momentum. Analysts note that Ethereum’s recent inflows follow a $446 million outflow earlier in September, suggesting a cautious re-entry into the asset as prices rise BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].

The broader context of Bitcoin ETFs includes a 5.92% share of BTC’s market cap, with total net assets reaching $122.92 billion. Ethereum ETFs hold 2.86% of ETH’s market cap, or $9.27 billion in net assets. Despite Ethereum’s underperformance, the modest inflows indicate resilience in the face of macroeconomic uncertainty and regulatory developments. The focus remains on Bitcoin’s ETF-driven liquidity, which has positioned it as a key asset for institutional portfolios amid a shifting macroeconomic landscape BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].

Investor sentiment is further bolstered by the historical correlation between ETF inflows and price action. Bitcoin’s post-halving cycle dynamics, combined with ETF-driven demand, have created a bullish environment. However, analysts caution that macroeconomic headwinds, such as U.S. trade tariffs and global economic shifts, could temper momentum. The current inflows, however, suggest that institutional adoption and portfolio reallocation are outweighing these risks for now BTC, ETH ETFs Post Positive Flows as Prices Rebound - CoinDesk^[1].