Last week, crypto investment products saw significant outflows, reaching $1.4 billion, the largest since March. This occurred amid changing investor sentiments and recent comments from the U.S. Fed Chair.
Withdrawals from Bitcoin and Ether
According to CoinShares data, the largest outflows were seen in Bitcoin-linked funds, totaling $1.0 billion, while ether products lost around $440 million. The main withdrawals were concentrated in the U.S., Sweden, and Switzerland, although modest inflows were observed in Germany and Canada.
Market Trends and Volatility
The crypto market demonstrated volatility throughout the week. "Sentiment shifted later in the week following Jerome Powell’s address ... sparking inflows of $594 million," said James Butterfill, head of research at CoinShares. The price drop of Bitcoin from $116,000 to around $112,000 was also significant, as was the decline in the price of Ether from $4,250 to $4,100.
Performance of Smaller Tokens
The performance of smaller tokens again showed mixed results: XRP funds took in $25 million, Solana saw inflows of $12 million, while Cronos gained $4.4 million. Meanwhile, Sui and Toncoin posted outflows of $12.9 million and $1.5 million, respectively.
Despite last week's outflows, month-to-date figures indicate that investors have added about $2.5 billion to ether products while pulling $1 billion from Bitcoin vehicles. These events highlight the fragility of investor appetite and the sensitivity of crypto assets to monetary policy changes.
