Bitcoin ETF outflows reached $470 million on Wednesday, marking the largest in two weeks amid a Federal Reserve rate cut, as funds like Fidelity’s FBTC and ARK Invest’s ARKB saw significant redemptions while Bitcoin’s price dipped to $108,000 before rebounding.
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Outflows totaled $470 million across major spot Bitcoin ETFs, led by Fidelity’s FBTC with $164 million, according to Farside Investors data.
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Bitcoin price fluctuated between $108,201 and $113,567 in the last 24 hours despite the Fed’s 25 basis point cut.
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ETFs still hold over 1.5 million Bitcoin worth $169 billion, representing 7.3% of total supply, per Bitbo analysis.
Explore the latest Bitcoin ETF outflows: $470M exit after Fed rate cut impacts price and holdings. Discover key fund movements and expert insights for informed crypto investing.
What Caused the Recent Bitcoin ETF Outflows?
Bitcoin ETF outflows surged to $470 million on Wednesday, the highest in two weeks, as U.S. markets reacted choppily to the Federal Reserve’s 25 basis point interest rate cut. Spot Bitcoin exchange-traded funds experienced significant redemptions, with Bitcoin’s price briefly falling to $108,000 before recovering above $110,000. This pullback followed days of inflows, highlighting the sensitivity of crypto investments to macroeconomic shifts.
US-listed spot Bitcoin ETFs shed substantial assets amid broader market uncertainty. Data from Farside Investors shows Fidelity’s FBTC leading with $164 million in outflows, followed closely by ARK Invest’s ARKB at $143 million and BlackRock’s IBIT at $88 million. Grayscale’s GBTC recorded $65 million in exits, while Bitwise’s BITB saw a smaller $6 million loss. This marked a reversal from recent gains, including $149 million on Monday and over $202 million on Tuesday, underscoring the volatile nature of ETF flows tied to Bitcoin’s price movements.
Bitcoin ETFs have suffered a red day marked by large outflows. Source: Farside Investors
The outflows have trimmed cumulative net inflows to $61 billion, reducing total assets under management to $149 billion. This now accounts for 6.75% of Bitcoin’s overall market capitalization, based on figures from crypto investment research platform SoSoValue. Such dynamics reflect investor responses to policy changes, where rate cuts intended to stimulate the economy can sometimes prompt short-term risk aversion in high-volatility assets like cryptocurrencies.
Despite the daily dip, the broader trend for spot Bitcoin ETFs remains robust since their U.S. launch in early 2024. These vehicles have democratized access to Bitcoin for traditional investors, channeling billions into the ecosystem. However, events like the Federal Reserve’s decisions continue to influence capital allocation, as lower rates might encourage shifts toward other yield-bearing opportunities.
How Did the Federal Reserve Rate Cut Impact Bitcoin’s Price?
The Federal Reserve’s 25 basis point rate cut, announced on Wednesday, initially pressured Bitcoin’s price downward, with the cryptocurrency dropping to a low of $108,201 within 24 hours, according to CoinGecko data. This decline occurred despite expectations that easier monetary policy would boost risk assets, as markets grappled with mixed signals on inflation and growth. Bitcoin traded in a range of $108,201 to $113,567, showing resilience but also highlighting its correlation with broader U.S. equity movements during the session.
Analysts note that while rate cuts historically support crypto rallies by reducing the appeal of low-risk bonds, immediate reactions can be choppy due to profit-taking. For instance, the cut came alongside discussions on persistent trade tensions, potentially adding uncertainty. Bitcoin partially recovered later in the day, buoyed by positive geopolitical developments, such as a reported meeting between U.S. President Donald Trump and Chinese President Xi Jinping addressing bilateral trade issues. This interaction may have eased some global economic fears, aiding Bitcoin’s rebound.
Supporting data from Bitbo indicates that ETF flows are closely linked to price action; inflows in early October drove a rally, while Wednesday’s outflows amplified selling pressure. Crypto investment research platform SoSoValue reports that despite the setback, spot Bitcoin ETFs continue to hold more than 1.5 million BTC, valued at approximately $169 billion, or 7.3% of the total circulating supply. This substantial allocation underscores institutional confidence, even amid temporary outflows.
BlackRock’s IBIT maintains the largest holdings at 805,239 Bitcoin, followed by Fidelity’s FBTC with 206,258 BTC and Grayscale’s GBTC with 172,122 BTC. These figures, per Bitbo, illustrate the concentration of exposure among top providers. Michael Saylor, co-founder of MicroStrategy, remains optimistic, stating on Monday that Bitcoin could reach $150,000 by the end of 2025, driven by ongoing adoption and positive regulatory developments in the cryptocurrency space. His perspective, drawn from years of corporate Bitcoin strategy, emphasizes long-term value over short-term volatility.
Frequently Asked Questions
What were the biggest Bitcoin ETF outflows on October 23, 2025?
On October 23, 2025, spot Bitcoin ETFs saw $470 million in total outflows, the largest in two weeks. Fidelity’s FBTC led with $164 million, ARK Invest’s ARKB followed at $143 million, and BlackRock’s IBIT recorded $88 million, according to Farside Investors. These redemptions contributed to Bitcoin’s intraday price dip.
Why did Bitcoin drop to $108,000 after the Fed rate cut?
Bitcoin’s price fell to $108,000 following the Federal Reserve’s 25 basis point rate cut due to choppy market reactions and profit-taking amid uncertainty on inflation and trade policies. The cryptocurrency quickly recovered to around $110,000 as investors assessed the stimulus effects, with data from CoinGecko showing a 24-hour range up to $113,567. This volatility reflects crypto’s sensitivity to U.S. monetary decisions.
Key Takeaways
- Major Outflows Hit Leading Funds: Fidelity’s FBTC, ARK’s ARKB, and BlackRock’s IBIT drove $470 million in Bitcoin ETF exits, signaling short-term caution post-rate cut.
- Bitcoin Price Resilience: Despite dipping to $108,000, BTC rebounded within hours, maintaining a trading range influenced by Fed policy and global trade talks.
- Institutional Holdings Remain Strong: ETFs hold 1.5 million BTC worth $169 billion; experts like Michael Saylor forecast $150,000 by year-end, urging focus on long-term growth.
Conclusion
The recent Bitcoin ETF outflows of $470 million highlight the immediate impacts of Federal Reserve rate cuts on cryptocurrency markets, with funds like FBTC and ARKB experiencing notable redemptions as Bitcoin’s price briefly hit $108,000. Despite this, spot Bitcoin ETFs maintain significant holdings representing over 7% of BTC’s supply, per sources like Bitbo and SoSoValue, demonstrating enduring institutional interest. Looking ahead, positive developments in adoption and policy could propel Bitcoin toward new highs, as forecasted by experts including Michael Saylor—investors should monitor macroeconomic cues for optimal positioning in this evolving landscape.
