Crypto ETFs Log $55M Outflows After Fed’s First 2025 Rate Cut

Crypto exchange-traded funds (ETFs) recorded $55.2 million in net outflows on September 17, marking the first reaction from investors following the Federal Reserve’s initial rate cut of the year, according to CoinMarketCap data.

The majority of withdrawals came from Bitcoin ETFs, which shed $51 million in a single day. Ethereum products posted smaller outflows at $4 million, signaling a more measured retreat by ETH-focused investors.

Weekly Gains Reversed

The latest pullback stands in stark contrast to the prior week, when ETFs saw inflows of nearly $906 million, one of the strongest weekly performances of 2025. Over the past month, however, flows remain negative at – $318 million, highlighting volatile investor sentiment as macro policy shifts weigh on risk assets.

Fed Cut Sparks Mixed Reactions

The Federal Reserve’s decision to trim rates by 25 basis points – its first reduction in 2025 – was expected to buoy risk appetite. Instead, crypto ETFs saw modest outflows, suggesting investors are repositioning rather than committing fresh capital.

Historically, Fed rate cuts have fueled long-term equity rallies, but near-term uncertainty often triggers profit-taking and liquidity reshuffling.

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Year-to-Date Context

Despite the September setback, crypto ETF performance remains resilient. The strongest inflow month of the year was July 2025 (+$11.04B), while February marked the weakest with -$3.3B in net outflows. Analysts caution that macro headlines will likely dictate ETF demand in the weeks ahead, particularly as traders weigh the pace of further Fed easing.