No rate cuts, no ETF boom: Bitcoin ETF inflows remain weak amid Fed’s decision

Inflows into U.S. spot Bitcoin ETFs remain weak for the second consecutive day as the Federal Open Market Committee’s decision yesterday to keep interest rates unchanged weighs on investor sentiment.

According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded $92.09 million in inflows on Jan. 29, continuing the weak inflow trend for the second consecutive day. The majority of inflows seen on the day came from Grayscale’s mini Bitcoin Trust which drew in $106.23 million followed by Fidelity’s FBTC with $18.2 million in inflows.

Meanwhile, BlackRock’s IBIT, which was close to holding $60 billion in net assets, experienced $92.09 million in outflows, ending its 9-day inflow streak. Bitwise’s BITB also reported a net outflow of $3.96 million on the day. The remaining eight BTC ETFs saw “0” flows.

The total trading volume for investment products stood at $3 billion on Jan. 29, while their total net assets amounted to $121.36 billion, accounting for 5.88% of the total Bitcoin supply.

Bitcoin ETF inflows remained sluggish following the Federal Open Market Committee’s decision on Wednesday, to keep interest rates unchanged. The Fed held its federal funds rate steady at 4.25% to 4.50%, attributing the move to “somewhat elevated inflation,” in line with analysts’ expectations.

Despite the dovish stance from the Fed, Bitcoin (BTC) rose 3.1% over the past day, exchanging hands at $105,366 at press time. 

“While [yesterday’s] Fed decision didn’t shake the market, the bigger picture remains clear—investors are waiting for confirmation that rate cuts are on the horizon,” Matt Mena, crypto research strategist at 21Shares, told crypto.news.

Market participants are now shifting their focus to the upcoming Personal Consumption Expenditures (PCE) report, set to be revealed this Friday, which is anticipated to be the next significant catalyst for risk assets, including Bitcoin.

Until such signals emerge, Bitcoin is expected to consolidate within its current range, with $105k serving as a critical breakout level and $108k as the next major upside target if Friday’s data favors risk assets, Mena added.