US Spot Bitcoin ETFs Suffer $470M Outflows After Federal Reserve Rate Cut

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced significant net outflows totaling approximately $470 million following a Federal Reserve rate cut, which initially boosted risk appetite but soon raised concerns about inflation and economic slowdown. Fidelity's FBTC led the withdrawals with $164 million, followed by ARK Invest's ARKB and BlackRock's IBIT, while Ethereum ETFs also saw outflows of about $81 million except for BlackRock's ETHA fund which saw inflows. These outflows offset earlier inflows, reducing total net flows to roughly $61 billion and lowering assets under management of Bitcoin ETFs to near $149 billion, representing about 6.7% of Bitcoin's market capitalization. The market volatility reflects investor uncertainty amid macroeconomic pressures, with some analysts attributing the movements to short-term profit-taking and rebalancing rather than a shift in long-term demand. Despite the turbulence, long-term optimism remains, exemplified by forecasts like MicroStrategy’s Michael Saylor's prediction of Bitcoin reaching $150,000 by the end of 2025. Additionally, geopolitical developments, including a trade agreement between Presidents Donald Trump and Xi Jinping, have so far failed to stabilize the volatile crypto market.