US spot Bitcoin and Ether exchange-traded funds (ETFs) experienced a rebound on Tuesday after Federal Reserve Chair Jerome Powell suggested that further interest rate cuts could occur before the end of the year.
Spot Bitcoin ETFs posted $102.58 million in net inflows, recovering from a $326 million outflow the previous day, according to SoSoValue data. Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the gains with $132.67 million in inflows, while BlackRock’s iShares Bitcoin Trust (IBIT) saw a small outflow of $30.79 million.
Total net assets across all spot Bitcoin ETFs climbed to $153.55 billion, equivalent to 6.82% of Bitcoin’s market capitalization, with cumulative inflows reaching $62.55 billion.
Ether ETFs followed a similar trend, recording $236.22 million in net inflows after Monday’s sharp $428 million outflow. Fidelity’s Ethereum Fund (FETH) led the inflows with $154.62 million, trailed by Grayscale’s Ethereum Fund at $34.78 million and Bitwise’s Ethereum ETF at $13.27 million.
Powell Signals Potential Rate Cuts
Federal Reserve Chair Jerome Powell indicated on Tuesday that the US central bank is approaching the end of its balance sheet reduction program and may consider rate cuts as the labor market softens.
Speaking at the National Association for Business Economics conference, Powell suggested the Fed could soon halt its “quantitative tightening” efforts, noting that reserves remain “somewhat above the level” consistent with ample liquidity.
“An October rate cut would likely ignite markets, with crypto and ETFs seeing increased liquidity and sharper movements,” said Vincent Liu, chief investment officer at Taiwan-based Kronos Research, in an interview with Cointelegraph. “Digital assets are expected to benefit as capital seeks efficiency in a lower-rate environment.”
Crypto Products Show Resilience Amid Recent Volatility
Despite last week’s market turbulence, crypto investment products remained resilient, drawing $3.17 billion in inflows even after a flash crash triggered by renewed US-China tariff tensions, according to CoinShares.
The firm reported that last Friday’s panic caused only $159 million in outflows, despite $20 billion in positions being liquidated across exchanges. This resilience helped push total crypto inflows for 2025 to $48.7 billion, already exceeding last year’s total.
“Easing US-China tariff tensions, along with a renewed debasement trade reflected in gold’s strength, are driving fresh demand for digital assets,” Liu added.
