Bitcoin News Today: Bitcoin ETPs Face $404M Outflows Amid Fed Tightening, Ether Inflows Hit 15-Week Streak

Global cryptocurrency exchange-traded products (ETPs) experienced a significant shift last week, ending a 15-week inflow streak amid profit-taking fueled by the US Federal Reserve’s hawkish comments during the Federal Open Market Committee (FOMC) meeting. According to CoinShares, net outflows totaled $223 million following an initial influx of $883 million earlier in the week [1]. This reversal reflects heightened caution among investors, with reduced expectations for a September interest rate cut contributing to a broader risk-off market sentiment [2].

Bitcoin (BTC) ETPs were particularly affected, with outflows reaching $404 million, marking a sharp contrast to the $12.2 billion in net inflows recorded over the past 30 days [1]. August has historically proven to be a weak period for Bitcoin, with CoinGlass data showing a median return of -7.49% for the month [2]. Analysts from Matrixport, however, remain cautiously optimistic, noting that fiscal uncertainty often strengthens demand for hard assets like Bitcoin, especially as the US Congress reconvenes post-Labor Day [2].

In contrast, Ether (ETH) ETPs continued to attract positive inflows, marking their 15th consecutive week with $133 million added to the asset class [1]. This resilience is attributed to strong institutional interest and ongoing developments within the Ethereum network, including upgrades to its decentralized finance (DeFi) ecosystem [3]. Altcoins such as XRP, Solana (SOL), and Sui (SUI) also benefited, with inflows of $31.2 million, $8.8 million, and $5.8 million respectively, signaling a broader diversification of investor strategy [3].

The market’s reaction to recent US policy developments, including reciprocal import tariffs on 68 countries, initially caused unease but was largely offset by the cryptocurrency sector’s ability to maintain a market capitalization above $3.7 trillion [3]. Experts like Stella Zlatareva from Nexo highlight that structural inflows and the potential for clearer regulatory frameworks in the US are key stabilizing factors, suggesting a gradual return to steadiness in the altcoin market [3].

Despite the pullback in Bitcoin-related products, the overall performance of crypto ETPs underscores the evolving dynamics of digital asset investment. While macroeconomic factors such as Fed policy and geopolitical tensions remain influential, the continued inflows into Ether and altcoins reflect a strategic shift among investors seeking to hedge against uncertainty and capitalize on emerging opportunities. This divergence in performance between Bitcoin and Ethereum-based products highlights the maturing nature of the crypto market, where sentiment, fundamentals, and regulatory expectations are increasingly interwoven [1][2][3].

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Source:

[1] Bitcoin Sees Possible Profit-Taking Amid Fed Hawkishness While Ether Maintains Positive Fund Inflows (https://en.coinotag.com/bitcoin-sees-possible-profit-taking-amid-fed-hawkishness-while-ether-maintains-positive-fund-inflows/)