Bitcoin exchange-traded funds (ETFs) saw a significant outflow of $342.2 million, ending a 15-day streak of inflows totaling over $4 billion. This reversal came amid indications from Federal Reserve Chair Jerome Powell that the central bank will maintain its restrictive monetary policy stance, primarily due to concerns over tariffs set by former President Donald Trump. Fidelity's FBTC fund faced the largest redemptions, totaling $172.7 million, while Grayscale's GBTC recorded $119.5 million in outflows. Analysts described the withdrawal as a natural pause, given the resulting caution around higher interest rates which typically deter investments in riskier assets like Bitcoin. Despite the outflows, institutional interest in crypto remains strong, with a noted shift in strategy rather than an outright retreat. Interestingly, Ethereum ETFs managed to secure positive inflows during the same period, suggesting selective engagement from institutional investors. Bitcoin’s price experienced a minor decline of 1.3%, yet it quickly recovered, showing resilience amid these ETF fluctuations.

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