US-listed spot Bitcoin exchange-traded funds recorded $137 million in net inflows on Wednesday, extending a three-day streak of positive activity that brought total recent inflows to approximately $424 million. This rebound pushed October’s cumulative net flows into positive territory at $111 million, reversing the negative balance held through Tuesday following nearly $774 million in outflows during the previous week's final trading days.
The resurgence in Bitcoin ETF demand coincided with the US Federal Reserve’s decision to maintain its benchmark interest rate within a target range of 3.75% to 4%. Fed Chair Kevin Warsh noted that inflation remains above the central bank’s 2% target, limiting new directional guidance for markets. Bitget analyst Lewis Huang suggested that Bitcoin’s near-term performance may now depend more heavily on Treasury yields, dollar movements, and broader risk sentiment rather than immediate policy shifts.
At the time of reporting, Bitcoin traded at $79,848, reflecting a decline of roughly 1% over the preceding 24 hours. Market sentiment indicators remained stable, with the Crypto Fear & Greed Index holding at 51, categorized as "Neutral," for a second consecutive day. In contrast, Ether ETFs continued to experience withdrawals, shedding another $21 million on Wednesday. These outflows contributed to October’s total net losses for Ether products reaching $1.35 billion, while Ether itself traded at $2,310, down 1.7% over the same period.
The shift of Bitcoin ETF flows from negative to positive territory in late October indicates a stabilization of institutional appetite despite macroeconomic headwinds. The reversal follows significant weekly outflows, suggesting that short-term volatility did not permanently deter capital entry. However, the divergence between Bitcoin and Ether ETF performance highlights a bifurcated market structure where capital is rotating selectively rather than flowing broadly across major digital assets. Ether’s sustained outflows, totaling $1.35 billion for the month, contrast sharply with Bitcoin’s modest monthly gain of $111 million, implying that investors are currently favoring the perceived stability or narrative strength of Bitcoin over altcoin exposure.
From a Regulation and Market Structure perspective, the lack of decisive movement from the Federal Reserve places greater emphasis on secondary macro factors like Treasury yields and currency fluctuations. With inflation remaining above target, the absence of rate cuts limits traditional bullish catalysts for risk assets. Consequently, the sustainability of the current inflow streak depends less on monetary easing and more on internal crypto-market dynamics and global risk sentiment. Investors should monitor whether this three-day momentum persists into November or if it represents a temporary correction after the prior week’s heavy selling.
