Bitcoin ETFs Rally While Ethereum ETFs Decline Amid Trump Tariff Moves and Fed Policy Uncertainty

Trump’s tariff strategies and recent U.S. economic indicators have heightened turbulence in both cryptocurrency and ETF markets, with

and exchange-traded funds (ETFs) showing contrasting trends. On September 24, Bitcoin ETFs attracted $241 million in new investments after two days of withdrawals, reversing a $363 million outflow on September 22 and a $103.6 million withdrawal on September 23 Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million [ 2 ]. BlackRock’s IBIT led the gains with $128.9 million in inflows, while Fidelity’s FBTC brought in $29.7 million Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million [ 2 ]. Meanwhile, Ethereum ETFs continued to see significant outflows, losing $79.36 million on September 24, marking a third straight day of redemptions Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million [ 2 ]. Fidelity’s FETH saw $33.26 million withdrawn, and BlackRock’s ETHA recorded $26.47 million in outflows Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million [ 2 ].

This divergence highlights a stronger institutional preference for Bitcoin over Ethereum. Bitcoin ETFs now manage $147.2 billion in net assets, accounting for 6.6% of Bitcoin’s total market value, while Ethereum ETFs hold $27.5 billion, or 5.45% of ETH’s market capitalization Bitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid … [ 1 ]. Experts attribute Bitcoin’s stability to coordinated institutional buying after recent sell-offs created attractive entry points, whereas Ethereum continues to face regulatory uncertainty and increased competition from other networks Bitcoin ETFs See $241M Inflows As Ethereum Bleeds $79 Million [ 2 ].

Decisions from the Federal Reserve and inflation figures have further complicated the market environment. The Fed’s hawkish stance after its September 18 rate reduction—cutting the benchmark rate by 25 basis points but signaling fewer future cuts than anticipated—prompted a $51.28 million outflow from Bitcoin ETFs Bitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers … [ 3 ]. Investors saw this as a sign that inflation risks remain, with the Fed’s updated outlook suggesting only two more rate cuts in 2025 and even fewer in 2026 Bitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers … [ 3 ]. This uncertainty has weighed on risk assets, with Bitcoin and Ethereum prices rising slightly but staying volatile.

Key upcoming economic releases, such as the September 26 PCE inflation report, are expected to play a crucial role in shaping market sentiment. Analysts forecast headline PCE inflation to climb to 2.7% year-over-year, just above the previous 2.6%, while core PCE is likely to remain at 2.9%. If the report comes in hotter than expected, it could postpone Fed rate cuts, which markets currently see as having a 91.9% chance in October and 78.8% in December. Trump’s push for deeper rate reductions, amid inflationary pressures from his tariff policies, has added another layer of political uncertainty to the Fed’s outlook.

The broader ETF market is also evolving. By August 2025, U.S. ETFs reached a record $12.19 trillion in assets, with crypto-related ETFs now making up a notable share. BlackRock’s Bitcoin ETFs alone generated $218 million in annual revenue, highlighting the increasing institutional embrace of digital assets Bitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid … [ 1 ]. However, this rapid growth has sparked concerns about how sensitive the market is to central bank decisions. With more inflows coming from passive investments in retirement and target-date funds, some analysts believe the market may be less reactive to Fed policy changes.

Despite recent market swings, the long-term outlook remains positive. Leon Waidmann of Onchain Foundation pointed out that BlackRock’s crypto ETFs have moved from being experimental to becoming a core source of revenue, setting a new standard for institutional involvement Bitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid … [ 1 ]. Bloomberg’s Eric Balchunas emphasized that crypto ETFs’ low fees, yield opportunities, and regulatory transparency are key factors supporting ongoing growth Bitcoin and Ethereum ETFs Suffer Massive $244M Outflow Amid … [ 1 ]. At the same time, institutional accumulation of Bitcoin and regulatory headwinds for Ethereum continue to be major influences on future price trends PCE Inflation Data Release Today: Are Prices Cool or Sticky? [ 4 ].