In recent days, crypto markets have felt significant pressure fueled by concerns over U.S. Federal Reserve actions. Investors have begun massive withdrawals, leading to serious outflows from digital assets.
Overall State of Crypto Markets
According to CoinShares, digital asset investment products faced $1.43 billion in outflows, the largest since March. Trading volumes in exchange-traded products (ETFs) surged to $38 billion, nearly 50% above the 2025 average. Early in the week, investors dumped $2 billion, but Jerome Powell's softer remarks at Jackson Hole led to a return of $594 million to the market.
Difference Between Bitcoin and Ethereum
The outflows highlighted a divide between Bitcoin and Ethereum. Bitcoin saw a $1 billion exit from its products, while Ethereum kept its losses to a more modest $440 million. Meanwhile, Ethereum has attracted $2.5 billion in net inflows this month, compared to Bitcoin's outflows of $1 billion. Year-to-date, 26% of assets under management are concentrated in Ethereum, compared to 11% for Bitcoin.
ETF Changes and Their Impact on the Market
According to data from the blockchain analytics platform Lookonchain, 10 Bitcoin ETFs collectively gained only 41 BTC, about $4.73 million. In contrast, nine Ethereum ETFs saw much larger inflows, absorbing 61,425 ETH, totaling around $285.19 million. Notably, BlackRock’s iShares significantly contributed, adding 24,461 ETH to its holdings, now totaling 762,135 ETH valued at $3.54 billion.
Recently, investors have started moving away from Bitcoin, reallocating funds into Ethereum and a few altcoins. However, the Fed's actions will continue to influence investment flows.
