Biggest Outflows Since March 2025
The cryptocurrency market faced another major blow last week as crypto exchange-traded products (ETPs) recorded $1.43 billion in outflows, marking the largest weekly losses since March 2025, according to CoinShares data. The sharp decline came after a short-lived inflow trend that had previously added $4.3 billion over two weeks.
The primary drivers behind these losses were the recent sell-offs in Bitcoin (BTC) and Ether (ETH), which dragged down overall investor sentiment. Bitcoin slipped from $116,000 on August 18 to $112,000 by week’s end, while Ether fell below $4,100 after starting the week around $4,250, according to CoinGecko.
Spot ETFs See Massive Withdrawals
The report highlights that spot Ether ETFs suffered their second-largest outflows on record, with nearly $430 million withdrawn in a single day (Tuesday), according to SoSoValue data. Bitcoin-based investment products faced even bigger challenges, losing over $1 billion during the same week.
These withdrawals represent a major reversal from the positive trend seen earlier this month, where Ethereum funds attracted significant inflows, outpacing Bitcoin by a wide margin.
Why Are Investors Pulling Back?
According to James Butterfill, Head of Research at CoinShares, the massive outflows were largely triggered by “polarized” investor sentiment over U.S. monetary policy. Uncertainty regarding the Federal Reserve’s stance on interest rates initially drove panic selling, resulting in $2 billion in outflows early in the week.
However, Jerome Powell’s comments at the Jackson Hole Symposium later in the week provided a slightly dovish tone, easing concerns and sparking $594 million in inflows. Still, this late rebound was not enough to offset the earlier losses.
Interestingly, Ether’s performance reflected this sentiment shift more strongly. While the asset faced sharp withdrawals mid-week, it recovered significantly, with $440 million of outflows recorded after the recovery rally. Year-to-date data shows Ethereum inflows represent 26% of total assets under management (AUM), compared to just 11% for Bitcoin, signaling stronger institutional interest in ETH.
Altcoins Show Mixed Results
Beyond Bitcoin and Ethereum, altcoin ETP flows were mixed.
- XRP (XRP) posted $25 million inflows,
- Solana (SOL) added $12 million,
- while Sui (SUI) and Toncoin (TON) saw notable outflows.
The recent $1.4 billion ETP outflow underscores heightened volatility and uncertainty in the crypto market. While Bitcoin faced the largest withdrawals, Ethereum’s resilience and increasing share in institutional inflows suggest growing confidence in ETH over BTC. With monetary policy still dictating market direction, investors should stay alert for signals from upcoming economic data and central bank decisions.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.