Key Takeaways
- Bitcoin and ether ETFs lost $520.09M on Wednesday after the Fed’s first rate hike since 2023.
- XRP, solana, and HYPE funds drew inflows, showing selective demand despite tighter conditions.
- Markets will watch for another Fed hike in 2026 as bitcoin ETF demand stays under pressure.
Blackrock Leads Bitcoin, Ether ETF Selloff
Wall Street’s renewed fight against inflation landed squarely on the crypto market on Wednesday, Sept. 16.
Bitcoin exchange-traded funds (ETFs) recorded $295.98 million in net outflows, extending a difficult stretch for institutional demand as tighter financial conditions weighed on risk appetite.
Blackrock’s IBIT led the exits with $144.11 million, followed by Ark & 21Shares’ ARKB at $84.40 million. Fidelity’s FBTC lost $52.72 million, while Grayscale’s GBTC shed another $18.22 million. Morgan Stanley’s MSBT provided the lone inflow at $3.47 million.
Bitcoin ETF trading value reached $2.81 billion, while net assets fell to $95.19 billion. The latest withdrawals add another headwind for bitcoin’s price, despite its recovery above $76,000.
Ether Absorbs Another Heavy Round of Selling
Ether ETFs fared even worse relative to their asset base, posting $224.11 million in net outflows.
Blackrock’s ETHA accounted for $110.03 million of the decline. Fidelity’s FETH lost $55.58 million, while Blackrock’s staking-focused ETHB shed $19.76 million. Vaneck’s ETHV recorded a $14.03 million exit. Grayscale’s ETHE and 21Shares’ TETH lost $13.93 million and $10.78 million, respectively.
No ether fund reported an inflow. Trading value reached $1.20 billion, with net assets declining to $15.16 billion. The retreat followed Tuesday’s $141.47 million outflow, putting ether ETFs under sustained pressure after several weeks of resilient institutional demand.
XRP, HYPE and Solana Find Buyers
Smaller crypto ETF categories showed greater resilience.
XRP ETFs attracted $3.50 million, entirely through Franklin’s XRPZ. Daily trading value totaled $37.30 million, while net assets closed at $1.40 billion. The inflow provided a modest positive signal for investors tracking XRP’s price correlation with daily ETF flows.
HYPE ETFs added $1.67 million through Grayscale’s HYPG. Net assets finished at $417.20 million. Solana ETFs edged higher by $836,930. Bitwise’s BSOL attracted $2.69 million, offset by a $1.85 million withdrawal from Grayscale’s GSOL. Net assets closed at $1.38 billion.
Fed Opens a New Chapter for Risk Assets
The day’s defining macro event came from Washington.
The Federal Reserve unanimously raised its benchmark rate by 25 basis points to a range of 3.75% to 4%, its first increase since July 2023. Officials said inflation remained elevated and reiterated their commitment to returning it to the 2% target.
The accompanying projections carried an equally important signal. 16 of 18 policymakers expected at least one additional quarter-point increase before year-end, while the median projection placed the federal funds rate at 4.1% at the end of 2026.
For bitcoin and the wider crypto market, that outlook keeps borrowing costs and liquidity firmly in focus. Wednesday’s ETF data showed how quickly institutional positioning can respond when expectations for prolonged monetary restraint move higher.
