US Bitcoin ETFs Experience Positive Inflows Amid Fed’s Interest Rate Static

On Wednesday, US-listed spot Bitcoin exchange-traded funds (ETFs) recorded their third consecutive day of inflows, bringing the cumulative net inflows for October into the positive, with just two trading days left in the month.

Current Inflow Metrics

According to data from SoSoValue, Bitcoin ETFs saw inflows of approximately $137 million on Wednesday. This surge contributed to a total of around $424 million in inflows over the past three days, leading to a net inflow of $111 million for October. This recovery follows a challenging previous week, where nearly $774 million exited the market in the last two trading days.

Impact of Federal Reserve Decisions

This resurgence in Bitcoin ETF activity aligns with the US Federal Reserve’s recent decision to maintain the benchmark interest rate within a target range of 3.75% to 4%. Fed Chair Kevin Warsh has emphasized that inflation remains above the central bank’s target of 2%.

“With limited new direction from the Fed, Bitcoin’s near-term performance may depend more heavily on Treasury yields, dollar movements and broader risk sentiment,” said Lewis Huang, an analyst at Bitget.

Current Market Conditions

At the time of writing, Bitcoin is priced at $79,848, reflecting a decrease of approximately 1% over the past 24 hours. Market sentiment appears stable, with the Crypto Fear & Greed Index registering a score of 51, categorized as “Neutral” for the second day in a row.

Ether ETFs Face Continued Withdrawals

In contrast to Bitcoin ETFs, Ether (ETH) ETFs faced further withdrawals on Wednesday, with an additional $21 million leaving the market, leading to total net outflows of $1.35 billion for October. Ether is currently trading at $2,310, down by 1.7% in the past 24 hours.