Crypto News: Crypto Funds See $223M Outflows, Ending 15-Week Inflow Streak Amid Fed Hawkishness
Key Takeaways:Global crypto ETPs posted $223M in outflows last week, ending a 15-week inflow streak.Hawkish Fed comments and strong U.S. economic data weighed on investor sentiment.Bitcoin funds saw $404M in outflows, while Ether defied the trend with $133M in inflows.XRP, Solana, and Sui funds also recorded modest gains.Global cryptocurrency investment products saw their first weekly net outflows since April, as investors took profits and reacted to a more hawkish-than-expected U.S. Federal Reserve stance. According to CoinShares’ latest report published Monday, crypto ETPs experienced $223 million in outflows last week, breaking a 15-week streak of consecutive inflows.Despite strong early-week momentum with $883 million in inflows, sentiment reversed midweek following the Federal Open Market Committee (FOMC) meeting. A series of better-than-expected U.S. economic reports and comments from Fed Chair Jerome Powell reduced the likelihood of a September rate cut from 63% to just 40%, according to CME data.“Given that $12.2 billion in net inflows occurred over the last 30 days — 50% of year-to-date flows — a modest round of profit-taking is understandable,” CoinShares noted.Bitcoin Sees Largest Outflows as August BeginsBitcoin (BTC) investment products bore the brunt of the pullback, recording $404 million in outflows, as BTC enters August — historically one of its weakest months. Data from CoinGlass shows that Bitcoin’s median return in August is -7.49%, making it a historically challenging month for crypto markets.Still, analysts at Matrixport believe a potential rebound could emerge after the U.S. summer recess, as fiscal debates in Congress resume.“Fiscal uncertainty has historically supported hard assets like Bitcoin,” Matrixport said in a research note. “BTC could regain traction after Labor Day as investors refocus on macro risk.”Ether Defies Broader Retreat With $133M InflowsEther (ETH) stood out as the exception, attracting $133 million in net inflows despite broader market weakness. This marks the 15th consecutive week of positive inflows for Ether-based ETPs, underscoring persistent investor confidence in the asset.Other altcoins also saw positive flows:XRP: $31.2 millionSolana (SOL): $8.8 millionSui (SUI): $5.8 millionTrump’s Tariff Order Recalibrates Markets, Not Crashes ThemOn Thursday, former President Donald Trump signed an executive order imposing reciprocal import tariffs of 15% to 41% on goods from 68 countries, effective August 7. While the move rattled traditional markets, digital assets showed resilience.“The digital asset market remains firmly above $3.7 trillion, buoyed by institutional inflows and the prospect of regulatory clarity,” said Stella Zlatareva, dispatch editor at Nexo. “We may see gradual altcoin recovery as volatility stabilizes.”Cautious Optimism with Focus on September CatalystsWith the Fed now less likely to cut rates in September, and Bitcoin entering a historically bearish month, short-term caution is warranted. However, strong structural flows, positive sentiment around Ether, and renewed fiscal debates in Washington may provide new catalysts in Q4 2025.
