Significant Outflows from Cryptocurrency Investment Products
Last week, cryptocurrency investment products reversed a trend of emerging inflows, experiencing substantial outflows as Bitcoin and Ether prices fell.
According to a report from CoinShares released on Monday, global crypto exchange-traded products (ETPs) recorded outflows totaling $1.43 billion, concluding a two-week inflow streak that had brought in $4.3 billion.
The outflows coincided with Bitcoin (BTC) dropping from above $116,000 on August 18 to $112,000 by the week’s end, while Ether (ETH) fell below $4,100 on Tuesday after starting the week at around $4,250, as per CoinGecko’s data.
Last week’s declines represented the second-largest outflows on record for spot Ether exchange-traded funds (ETFs), with nearly $430 million withdrawn just on Tuesday, according to SoSoValue.
James Butterfill, head of research at CoinShares, indicated that the $1.4 billion in outflows from crypto funds marked the most significant losses since March 2025.
Butterfill attributed the sell-off to an “increasingly polarized” investor sentiment concerning US monetary policy, noting that pessimism surrounding the Federal Reserve’s approach led to $2 billion in outflows early in the week.
“However, sentiment shifted later in the week following Jerome Powell’s address at the Jackson Hole Symposium, which was largely perceived as more dovish than anticipated, resulting in inflows of $594 million,” he noted.
Butterfill pointed out that this change in tone was particularly evident in Ether, which experienced a sharp recovery mid-week, leading to outflows of $440 million.
Bitcoin ETPs witnessed even larger outflows, exceeding $1 billion.
The analyst highlighted a significant shift in investor sentiment toward Bitcoin and Ether based on month-to-date inflows, where Bitcoin saw $1 billion in outflows compared to Ether’s $2.5 billion of inflows.
“Year-to-date inflows for Ethereum represent 26% of total assets under management, while Bitcoin’s share is just 11%,” Butterfill added.
Meanwhile, altcoin flows were varied, with XRP (XRP) experiencing $25 million in inflows and Solana (SOL) showing $12 million in gains. Conversely, Sui (SUI) and Toncoin (TON) encountered outflows of $13 million and $1.5 million, respectively.
