Crypto News: U.S. Bitcoin and Ether ETFs Rebound as Powell Signals Potential Rate Cuts

Key TakeawaysU.S. spot Bitcoin and Ether ETFs saw renewed inflows on Tuesday after sharp outflows the previous day.Powell signaled potential rate cuts and the nearing end of the Fed’s balance sheet reduction program.Bitcoin ETFs saw $102.58M in inflows, while Ether ETFs added $236.22M amid rising investor confidence.Analysts say a softer rate environment could spark renewed momentum across digital assets.Bitcoin and Ether ETFs Post Strong RecoveryAfter a week of heavy outflows triggered by the crypto market downturn, U.S. spot Bitcoin (BTC) and Ether (ETH) ETFs rebounded sharply on Tuesday as investors re-entered the market following Federal Reserve Chair Jerome Powell’s dovish remarks.According to SoSoValue, spot Bitcoin ETFs recorded $102.58 million in net inflows, recovering from a $326 million outflow just a day earlier.Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the turnaround with $132.67 million in inflows.BlackRock’s iShares Bitcoin Trust (IBIT) saw a smaller $30.79 million outflow, partially offsetting gains.Total net assets across all U.S. spot Bitcoin ETFs climbed to $153.55 billion, representing 6.82% of Bitcoin’s total market capitalization. Cumulative inflows to date reached $62.55 billion, reinforcing continued institutional appetite for BTC exposure.Meanwhile, Ether ETFs mirrored the rebound, logging $236.22 million in inflows after Monday’s steep $428 million outflow.Fidelity’s Ethereum Fund (FETH) topped the list with $154.62 million in inflows.Grayscale’s Ethereum Fund (ETHE) and Bitwise’s Ethereum ETF (ETHW) followed with $34.78 million and $13.27 million, respectively.Powell Hints at Policy Shift Toward Rate CutsSpeaking at the National Association for Business Economics conference, Federal Reserve Chair Jerome Powell said the U.S. central bank is “nearing the end” of its balance sheet reduction, signaling a potential policy shift toward easing.Powell noted that banking system reserves are “somewhat above the level consistent with ample liquidity,” suggesting that quantitative tightening may soon conclude.This dovish tone sparked optimism across risk assets, including crypto ETFs.“An October rate cut will have markets taking flight, with crypto and ETFs seeing liquidity flow and sharper moves,”said Vincent Liu, Chief Investment Officer at Kronos Research.“Expect digital assets to feel the lift as capital seeks efficiency in a softer rate environment,” he added.Crypto Products Show Resilience Amid Market VolatilityDespite last week’s sharp correction caused by renewed U.S.–China tariff tensions, crypto investment products have remained resilient.According to CoinShares, crypto funds saw $3.17 billion in inflows last week — even as more than $20 billion in positions were liquidated across exchanges. Total inflows for 2025 have now reached $48.7 billion, surpassing all of 2024’s figures.Only $159 million exited crypto investment products during last Friday’s flash crash, underscoring investor conviction in digital assets amid macro uncertainty.“Easing U.S.–China tensions and renewed interest in hard assets like gold are fueling fresh demand for Bitcoin and Ether,” Liu added.Market OutlookWith Powell hinting at potential rate cuts before year-end, risk assets — including Bitcoin ETFs and DeFi tokens — could benefit from renewed capital flows. Analysts expect a more accommodative Fed stance to sustain the ongoing “Uptober” momentum in both spot ETFs and crypto markets.At press time:Bitcoin (BTC) traded near $112,416Ether (ETH) hovered around $4,123