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Breaking News: Ledger CTO Warns Of Crypto Clipper Malware Following Major NPM Breach
crypto

Crypto Funds Bleed $352 Million Weekly Outflows Despite Optimism Over Fed Cuts: Report

Ash Tiwari
by Ash Tiwari
3 hours ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Crypto investment products saw $352 million in outflows over the past week, while trading volumes plummeted by 27%. However, the year-to-date (YTD) inflows remain robust at $35.2 billion. 

Bitcoin Sees Inflows, Ethereum Products Struggle

According to CoinShares’ latest Digital Asset Fund Flows Weekly Report, despite weaker payroll figures and greater prospects for a September interest rate cut in the US, crypto products struggled to attract or even retain their inflows.

Related Reading: $5 Billion Bitcoin Treasure Tied To Piracy Website Found In German Wallets

Among the crypto products, Bitcoin-based (BTC) products were successful in attracting $524 million in funds on a net basis. Data from SoSoValue shows that $144 billion worth of BTC – representing almost 6.5% of total market cap – is tied up in BTC investment products.

Meanwhile, it was Ethereum (ETH) products that led the net outflows, witnessing $912 million in outflows last week. In sharp contrast to the trend the week prior, these products saw outflows every day for the last seven trading days.

ethereum
Source: CoinShares

Despite last week’s net outflows, Ethereum exchange-traded products (ETPs) inflows remain elevated at $11.2 billion for the year. Total value tied in US spot ETH exchange-traded products (ETPs) currently stands at $27.64 billion.

Other altcoins – such as Solana (SOL) and XRP – also saw steady inflows, attracting $16.1 million and $14.7 million in inflows, respectively. Recent reports suggest that regulated XRP spot exchange-traded funds (ETFs) are nearing launch in the US.

In terms of countries, the US saw $440 million in outflows, while Germany and Hong Kong witnessed $85.1 and $8.1 million in inflows, respectively. Other countries such as Australia, Brazil, and Canada, recorded inflows as well.

crypto
Source: CoinShares

Will Crypto Investment Products See A Rebound?

The recent beating taken by crypto ETPs signals waning interest in digital assets. However, the price of leading cryptocurrencies such as BTC and ETH continues to hover close to their latest all-time highs (ATHs), hinting that high net outflows from crypto ETPs may be temporary.

Related Reading: Over 1 Million In Bitcoin Locked In Treasuries As Institutions Pour In $1 Billion

Recently, institutional adoption of Bitcoin reached another milestone as the total BTC held by public companies surged past one million. Meanwhile, ETH also continues to witness rapid adoption as an increasing number of firms embrace the top smart contract platform.

Bullish triggers – such as the US Federal Reserve (Fed) slashing interest rates – are likely to benefit risk-on assets, including cryptocurrencies. Latest estimates from FedWatch Tool give an 88.4% chance of the Fed cutting interest rates by 25 basis points later this month.

fedwatch
Source: FedWatch Tool

Since their launch in 2024, spot Bitcoin ETFs have experienced tremendous growth. Recent analyses predict that Bitcoin ETFs are likely to surpass their gold counterparts in the future. 

That said, it would be prudent to avoid over enthusiasm, as the Bitcoin mining industry is suffering since BTC’s last halving in 2024. If things don’t change soon, miners may increase Bitcoin selling pressure. At press time, BTC trades at $112,481, up 1.4% in the past 24 hours.

bitcoin
Bitcoin trades at $112,481 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, charts from CoinShares, FedWatch Tool, and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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