Bitcoin and Ether ETFs See $520M Outflows Following Fed Rate Hike

Key Facts

1U.S. bitcoin and ether ETFs recorded combined net outflows of $520.09 million on Wednesday.

2The selloff followed the Federal Reserve's decision to deliver its first interest-rate increase since 2023.

3XRP, Solana, and HYPE funds bucked the downward trend by recording modest inflows despite market pressure.

In a move reflecting a hawkish shift in U.S. monetary policy, the Federal Reserve raised interest rates for the first time since 2023 to combat inflation. According to reports, U.S.-listed bitcoin and ether ETFs recorded combined net outflows of $520.09 million on Wednesday, September 16. This policy decision significantly reduced investor appetite for risk assets, leading to a sharp reversal in institutional demand across the digital asset sector.

Despite the broad selloff affecting major assets, market data showed a divergence in altcoin performance; XRP, Solana, and HYPE funds bucked the downward trend by recording modest net inflows. This retreat in the primary crypto ETFs follows a period of market anticipation regarding the Fed's decision, placing renewed pressure on market liquidity which has become increasingly dependent on ETF-driven flows.

Looking ahead, traders are monitoring flow stability as updated price data for September 17, 2026, remains unavailable. While the upcoming economic calendar shows no major crypto-specific catalysts for the next seven days, markets will continue to digest the impact of higher interest rates on investor sentiment toward high-beta risk assets.