Bitcoin News Today: Bitcoin ETFs See $3B in Six-Day Outflows Amid Fed Uncertainty

Digital asset investment products experienced a significant outflow of $1.43 billion in the week, marking the largest exodus since March. The primary contributor to this outflow was Bitcoin, which recorded a $1 billion exodus as US-traded Bitcoin spot ETFs faced their sixth consecutive day of outflows, with combined declines approaching $3 billion [1]. This sustained selling pressure reflected institutional uncertainty about Bitcoin’s near-term prospects amid concerns over monetary policy [1].

The broader trend was influenced by shifting investor sentiment around the Federal Reserve’s stance. Early in the week, pessimism over the Fed’s policy outlook drove outflows of $2 billion. However, the tone shifted after Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium, which was interpreted as more dovish than expected, prompting a $594 million inflow [1].

Ethereum, in contrast, showed more resilience compared to Bitcoin. While it still faced $440 million in outflows, it broke a four-day outflow streak with renewed institutional interest. Month-to-date figures revealed a stark contrast: Ethereum posted $2.5 billion in inflows, while Bitcoin recorded $1 billion in outflows, signaling a shift in institutional preference [1]. Ethereum spot ETFs demonstrated growing appeal, with year-to-date inflows representing 26% of total assets under management, compared to just 11% for Bitcoin [1].

The performance of BlackRock’s Bitcoin (IBIT) and Ethereum (ETHA) ETFs remained notable despite the recent outflows. According to Bloomberg ETF analyst Eric Balchunas, the two funds accounted for 3.9% of year-to-date flows across all ETFs globally. IBIT returned 24.88%, and ETHA returned 44.68%, significantly outperforming traditional asset classes [1].

Altcoin flows presented a mixed picture. While XRP attracted $25 million in inflows, Solana and Cronos received $12 million and $4.4 million, respectively. However, Sui and Ton saw significant outflows of $12.9 million and $1.5 million, indicating a more selective and tactical approach among institutional investors [1]. This trend suggested that investors were redistributing capital within the crypto space rather than engaging in broad-based selling.

The week’s trading volume in crypto ETPs reached $38 billion, 50% above the year’s average, reflecting increased activity as investors positioned for different monetary policy scenarios [1]. The elevated trading levels highlighted a shift toward active management of crypto exposure, with investors reacting dynamically to macroeconomic signals.

Overall, the week’s data underscored the growing maturity of crypto ETPs as institutional investment vehicles. While short-term flows remain volatile, the products demonstrated their ability to attract capital during both positive and negative market cycles [1].

Source: [1] Crypto ETPs Face $1.4B In Weekly Outflows, Largest Since March (https://coinmarketcap.com/community/articles/68acd9539de84b22569c12a3/)