Global cryptocurrency exchange-traded products (ETPs) recorded significant outflows last week, snapping a 15-week streak of net inflows, driven by hawkish commentary from the US Federal Reserve.
ETPs witnessed a net outflow of $223 million, reversing previous weeks’ gains totaling $883 million. This shift in sentiment underscores investor caution following signals suggesting prolonged higher interest rates to combat inflation.
Bitcoin (BTC) products bore the brunt of the selling, accounting for $404 million in outflows. The move coincides with August historically being Bitcoin’s weakest month, posting median returns of -7.49%.
In contrast, Ether (ETH) ETPs displayed resilience, attracting their 15th consecutive week of net inflows totaling $133 million. This sustained interest reflects optimism surrounding Ethereum’s ongoing network upgrades and its pivotal role in the decentralized finance (DeFi) landscape.
Select alternative cryptocurrencies also defied the outflow trend. Products tracking XRP ($31.2 million), Solana (SOL, $8.8 million), and Sui (SUI, $5.8 million) registered positive inflows, indicating targeted investor confidence beyond the major assets.
Market analysts note the losses were relatively contained given the macro backdrop. They suggest structural inflows, institutional commitment, and the anticipation of clearer US cryptocurrency regulatory frameworks are providing underlying support. Altcoin markets are expected to stabilize gradually as these fundamentals persist.