Crypto ETFs Attract $1B in Fresh Capital as Investors Bet on Fed Rate Cut and Bullish Comeback

As markets brace for the upcoming Federal Reserve rate decision, crypto ETFs have recorded one of their strongest weekly inflows of 2025, signaling a powerful return of investor confidence. A total of $921 million poured into digital asset products — marking a pivotal shift ahead of the expected rate cut this week.

Massive Inflows Signal Renewed Confidence According to CoinShares, digital asset investment products saw $921 million in inflows last week — one of the largest surges this year. The United States led the charge with $843 million, followed by Germany with $502 million. Meanwhile, Switzerland reported outflows of $359 million, though analysts attributed this to internal fund reallocations rather than active selling. Total weekly trading volume hit $39 billion, far exceeding the yearly average of $28 billion. This resurgence suggests that investors are positioning for a more accommodative monetary policy from the Fed — typically a bullish driver for risk assets like crypto.

Bitcoin Leads, Ethereum Loses Momentum Bitcoin (BTC) dominated with $931 million in inflows last week, lifting total cumulative inflows since the beginning of the Fed’s rate-cut cycle to $9.4 billion. In contrast, Ethereum (ETH) saw its first outflow in five weeks, with $169 million leaving the asset class, reflecting uncertainty surrounding pending U.S. ETH ETF approvals. Among altcoins:

🔹 Solana (SOL) attracted $29.4 million

🔹 XRP brought in $84.3 million Investors now await Wednesday’s Fed meeting, which could set the tone for the final quarter of 2025.

Fed Expected to Cut Rates Again All eyes are on this week’s FOMC meeting, where policymakers are widely expected to cut interest rates by 25 basis points. This move would lower the target range to 3.75%–4.00%, following the previous 25-bps cut earlier this year. It would also confirm that the Fed is pivoting from inflation control toward supporting growth. Recent U.S. CPI data showed inflation rising 3% year-over-year, while jobless claims increased, suggesting a cooling labor market. According to Polymarket, 98% of traders are betting on a 0.25% rate cut. Fed Vice Chair Michelle Bowman also hinted that the committee remains open to further adjustments if economic conditions warrant, though some members, like Lorie Logan, warned that cutting too early could reignite price pressures.

Analysts: “A Rate Cut Could Ignite a New Bull Cycle” Lower interest rates mean cheaper capital, a weaker dollar, and greater risk appetite — all favorable for cryptocurrencies. Michael Langford, analyst at CoinShares, noted: “If the Fed confirms another rate cut, we could see institutional investors re-enter crypto markets — Bitcoin might test $130,000 before year-end.”

Summary: Big Money Flows Back Into Crypto A mix of rate-cut expectations, surging ETF inflows, and renewed investor optimism suggests that the crypto market may be gearing up for another bullish phase. 🔹 $921M in weekly inflows

🔹 $843M from the U.S.

🔹 $931M into Bitcoin

🔹 Expected 0.25% Fed rate cut All signs point to one conclusion: capital is flowing back into crypto — and this time, it’s serious.

#bitcoin , #Fed , #interestrates , #crypto , #etf

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