Federal Reserve's Hawkish Message Triggers $111M Crypto ETF Outflow

The recent Federal Reserve meeting had a notable impact on U.S. spot Bitcoin and Ethereum ETFs, causing them to turn negative as rate-cut hopes weakened.

This led to an outflow of $111 million across both the largest crypto ETF categories, with Bitcoin funds losing $82 million and ETH funds shedding $29 million.

The Bitcoin ETF outflow was particularly pronounced, with even BlackRock's IBIT, which had often absorbed capital in previous downturns, shedding $31 million. ARKB lost $44 million, while all Ethereum ETFs finished the session in the red.

Despite this decline, on-chain data suggests a different story: large wallets are accumulating exposure as Bitcoin trades near $64,000. Exchange reserves have fallen by approximately 80,000 BTC since February, and these wallets have absorbed about 125,000 BTC in the first half of June.