Bitcoin ETFs lose 4-week inflow streak amid Trump tariffs and Fed rate concerns

Spot Bitcoin exchange-traded funds in the United States ended their four-week inflow streak as investor demand weakened amid new Trump tariffs and uncertainty over the likelihood of another Federal Reserve rate cut this year.

According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded $902.5 million in net outflows over the past week, dated Sep. 22-26, ending a four-week inflow streak that saw over $3.9 billion enter the funds.

Fidelity’s FBTC experienced the largest net outflows over the past week, with $737.8 million exiting the fund. ARK 21Shares’ ARKB and Bitwise’s BITB followed with outflows of $123.3 million and $92.4 million, respectively.

Other ETFs that also saw net redemptions over the week included Grayscale’s GBTC and BTC funds, VanEck’s HODL, and Franklin Templeton’s EZBC, which reported combined outflows of $127.9 million.

BlackRock’s IBIT and Invesco’s BTCO managed to buck the trend, posting inflows of $173.8 million and $10 million, respectively. The remaining BTC ETFs saw zero flows over the week.

Looking at their Ethereum counterparts, the nine Ethereum ETFs fared no better, recording $795.56 million in net outflows over the past week and ending a two-week inflow streak amid investor caution.

Despite heavy redemptions over the past week, September is still shaping up as a strong month for the Bitcoin funds, which have attracted $2.57 billion in inflows, a significant improvement from the previous month’s $751 million in net outflows.

One potential reason for the risk-off sentiment shown by investors over the past week is uncertainty over the possibility of additional Fed rate cuts this year. 

In his latest appearance, Fed Chair Jerome Powell struck a hawkish tone when discussing the possibility of further rate cuts this year, while key Federal Reserve officials such as Beth Hammack and Austan Goolsbee have noted that the bank should be cautious when cutting interest rates.

Investor sentiment was further rattled after U.S. President Donald Trump announced a new round of tariffs targeting pharmaceuticals, heavy trucks, home fixtures, and furniture, reviving fears of a renewed global trade war and its potential impact on risk assets.

On the hourly chart, Bitcoin has confirmed a breakout from the upper side of a descending broadening wedge pattern on the hourly chart. In technical analysis, such a breakout confirms a bullish reversal, which in turn can lift trader sentiment and support price gains in the days that follow.

However, some analysts have cautioned that for an upside rally to materialize, the leading crypto asset needs to decisively reclaim the $112k support level. On the contrary, if the price fails to hold said level, a deeper correction towards the $105k region may be a possibility, according to analyst Ted Pillows.

Bitcoin (BTC) bulls briefly managed to push its price above the $112k level during early Asian trading hours on Sep. 29, but failed to hold above it. At press time, BTC was trading at $11,675, up 2.2% in the past 24 hours.