Bitcoin News Today: Global Crypto ETPs See $223M Outflow as Fed Hawkishness Spooks Investors

Global cryptocurrency exchange-traded products (ETPs) experienced a $223 million net outflow in the week ending August 2, marking the first withdrawal after 14 consecutive weeks of inflows [1]. The shift was driven largely by U.S. investors reacting to the Federal Reserve’s hawkish tone at the Federal Open Market Committee (FOMC) meeting, which suggested that inflation remains "somewhat elevated," dampening expectations for near-term rate cuts [1]. This caused a swift reversal in investor sentiment, with the total crypto market cap dropping 9.48% and approximately $370 billion in value erased [1].

Bitcoin-based products were the hardest hit, recording $404 million in net outflows, nearly halving the month-to-date outflow of $844 million [1]. In contrast, Ethereum continued its strong performance, logging $133.9 million in inflows for the 15th consecutive week [1]. This divergence highlights a potential shift in investor preference toward Ethereum over Bitcoin during the recent market correction [1]. Smaller altcoins also saw modest inflows, including Solana ($8.8 million), XRP ($31.2 million), and Sui ($5.8 million) [1].

Institutional investors largely followed the trend of selling Bitcoin and Ethereum ETFs, with CoinGlass reporting a $323.5 million single-day outflow from Bitcoin spot ETFs—the largest in recent history—and an even more significant withdrawal from Ethereum ETFs [1]. However, BlackRock defied the broader trend, with its Bitcoin and Ethereum ETFs recording inflows of $355.3 million and $394.2 million, respectively [1]. This suggests that at least one major institutional player still views both assets as undervalued [1].

Analysts have noted that the Bitcoin outflows were partly driven by profit-taking following a strong rally in the prior month, which had seen $12.2 billion in cumulative inflows—nearly half of the year’s total [2]. The recent pullback is considered a temporary correction rather than a long-term reversal [2]. The broader market remains stable, with digital asset products managing to maintain a total AUM of $215 billion [1]. This indicates that while short-term volatility is likely, the long-term structural support for crypto remains intact [1].

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Source: [1] Cointelegraph – [https://cointelegraph.com/news/crypto-funds-223m-outflows-fomc-15-week-winning-streak](https://cointelegraph.com/news/crypto-funds-223m-outflows-fomc-15-week-winning-streak)

[2] advfn.com – [https://mx.advfn.com/bolsa-de-valores/COIN/AMPUSD/crypto-news/96554139/crypto-funds-see-223m-outflow-ending-15-week-str](https://mx.advfn.com/bolsa-de-valores/COIN/AMPUSD/crypto-news/96554139/crypto-funds-see-223m-outflow-ending-15-week-str)