CoinDesk
US spot bitcoin and ether ETFs shed a combined $111 million on Wednesday as a hawkish turn from the Federal Reserve broke the recovery rally's institutional bid. Bitcoin funds lost $82 million and ether funds $29 million, with every ether product finishing in the red, according to SoSoValue data.
Why it matters
The breadth of the outflow is the story. BlackRock's IBIT shed $31 million and ARKB dropped $44 million, meaning the selling wasn't confined to fringe products. The move tracks Kevin Warsh's first meeting as Fed chair, where the committee held rates at 3.50%–3.75% as expected but pushed the median 2026 rate forecast to 3.8% from 3.4% in March. Nine of 18 officials now pencil in a hike this year, and markets price the odds of an October increase near 60%. The rate-cut thesis that powered the bounce is effectively gone.
Market impact
The price tape stalled with the flows. Total crypto market value held flat near $2.26 trillion since Tuesday's close, and bitcoin eased to about $63,800, mid-range of the 11-day climb, per CoinDesk data. The macro backdrop has flipped: the peace deal that drove the recovery eased inflation fears, but a Fed now leaning toward hikes has replaced the cut bets crypto was counting on. The next tests are October hike odds and whether the ETF bid returns.
Frequently asked questions
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How much did bitcoin and ether ETFs lose on Wednesday?
US spot bitcoin ETFs shed $82 million and ether ETFs shed $29 million on Wednesday, for a combined $111 million in outflows, according to SoSoValue data. Every ether fund finished in the red.
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Did BlackRock's IBIT also see outflows?
Yes. BlackRock's IBIT shed $31 million on Wednesday, and ARKB dropped $44 million, meaning the selling wasn't confined to smaller products — the flagship bled alongside the rest of the complex.
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Why did crypto ETFs turn red this week?
The Federal Reserve held rates at 3.50%–3.75% but pushed the median 2026 rate forecast to 3.8% from 3.4%, with nine of 18 officials now penciling in a hike this year. Markets responded by pricing October hike odds near 60%, ending the rate-cut thesis crypto was leaning on.
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How did bitcoin price react to the ETF outflows?
Bitcoin eased to about $63,800, mid-range of the 11-day recovery climb, while total crypto market value held flat near $2.26 trillion since Tuesday's close, per CoinDesk data. The price stalled rather than broke.
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What are the next catalysts to watch?
The two key tests are the odds of an October Fed hike and whether the ETF bid returns. A confirmed hike or continued hawkish guidance would deepen the outflow trend, while a softer data print could revive the cut trade.
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