Bitcoin News Today: Bitcoin and Ethereum drive $1.43B ETP outflows amid Fed rate concerns

Digital asset investment products experienced a record outflow of $1.43 billion last week, according to CoinShares’ latest weekly report, marking the third-largest withdrawal of the year and the biggest since March [1]. This sell-off was driven largely by Bitcoin and Ethereum, which saw outflows of $1 billion and $440 million, respectively [1]. The report attributes the early-week sell-off to heightened concerns over the Federal Reserve’s tightening path, with outflows reaching $2 billion in the first few days [1]. However, the tide partially turned later in the week following Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Symposium, which were interpreted as more dovish than expected. This prompted inflows of $594 million on Thursday and Friday, easing the overall losses [1].

While Bitcoin and Ethereum led the outflows, XRP-based exchange-traded products (ETPs) attracted $25 million in inflows, a positive sign for the asset as the U.S. Securities and Exchange Commission (SEC) officially closed its case against Ripple [1]. Solana and Cronos also added $12 million and $4.4 million in fresh capital, respectively. In contrast, Sui and Ton experienced outflows of $12.9 million and $1.5 million, indicating a fragmented investor landscape [1].

Geographic patterns further illustrated divergent investor behavior, with U.S.-based funds such as BlackRock’s iShares accounting for the bulk of the outflows at $1.3 billion. Sweden and Switzerland also contributed $135.5 million and $11.8 million in outflows, respectively. Meanwhile, modest inflows were recorded in Germany ($18.4 million), Canada ($3.7 million), and Hong Kong ($3.5 million), offering some balance [1].

Despite the recent outflows, Ethereum has shown stronger positioning this month, with $2.5 billion in inflows in August compared to Bitcoin’s $1 billion in net outflows. Year-to-date, Ethereum inflows represent 26% of total assets under management, while Bitcoin accounts for 11% [1].

Overall trading activity in ETPs surged last week, reaching $38 billion in volume—nearly 50% above the yearly average—highlighting increased market participation and volatility amid shifting monetary policy expectations [1].

Source: [1] XRP ETPs see $25M inflows as Bitcoin and Ethereum drive $1.43B exodus (https://cryptoslate.com/xrp-sees-25m-inflows-as-bitcoin-and-ethereum-drive-1-43b-exodus/)