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Crypto Investment Products Experience $223M in Withdrawals Amid Federal Reserve Concerns
Digital asset investment products experienced outflows of $223 million last week, ending a 15-week period of inflows.
Key Takeaways:
- Digital asset products recorded $223M in outflows, concluding a 15-week inflow trend.
- Concerns over interest rate hikes and macroeconomic volatility led to over $1B in withdrawals by Friday.
- Bitcoin was the primary driver of outflows, while Ethereum and XRP continued to draw in capital.
This shift occurs amid renewed worries regarding US monetary policy following a hawkish Federal Reserve meeting and unexpectedly strong economic data, as reported by CoinShares on Monday.
The week began with $883 million in inflows, but investor sentiment rapidly changed.
$1B Depart as Rate Concerns Trigger Risk-Averse Movement
By Friday, outflows surpassed $1 billion as risk-averse behavior took over, likely fueled by fears of sustained higher interest rates. Although weaker payroll data later in the week provided some dovish indications, they were insufficient to stabilize the markets.
Bitcoin experienced the most significant decline, with $404 million in outflows, underscoring its ongoing sensitivity to macroeconomic changes.
Nevertheless, year-to-date inflows into Bitcoin products total $20 billion, indicating persistent institutional interest despite the fluctuations.
In contrast, Ethereum had a robust week, recording $133 million in inflows, marking its 15th consecutive week of positive performance, which highlights investor confidence in its long-term fundamentals.
XRP followed with $31.2 million in inflows, while Solana and SEI attracted $8.8 million and $5.8 million, respectively.
Smaller increases were also noted in Aave and Sui, which garnered $1.2 million and $0.8 million.
Digital asset investment products saw US$223m in outflows last week, reversing early-week inflows of US$883m — likely a reaction to hawkish Fed signals and stronger-than-expected U.S. economic data. Bitcoin led the outflows with US$404m while Ethereum seeing US$133m inflows.…
— Wu Blockchain (@WuBlockchain) August 4, 2025
With $12.2 billion in net inflows over the past 30 days, accounting for half of 2024’s total inflows thus far, last week’s outflows may simply indicate a phase of profit-taking amid macroeconomic uncertainty.
As reported, spot Bitcoin ETFs recorded $812.25 million in net outflows on Friday, marking the second-largest single-day withdrawal in the history of these products.
This abrupt reversal eliminated a week’s worth of inflows and reduced cumulative net gains to $54.18 billion.
Total assets under management (AUM) across Bitcoin ETFs fell to $146.48 billion, representing 6.46% of the cryptocurrency’s overall market capitalization.
Similarly, spot Ether ETFs ended their 20-day inflow streak, the longest to date, with $152.26 million in net outflows on the same day.
The total AUM for Ether ETFs now stands at $20.11 billion, or 4.70% of Ethereum’s market capitalization.
95% Approval Likelihood for Spot Solana, XRP ETFs
According to reports, Bloomberg’s senior ETF analysts have assigned a 95% probability that the SEC will approve spot ETFs for Solana, XRP, and Litecoin this year, increasing their previous estimates from 90% amid rising optimism for institutional crypto products.
They also anticipate that a crypto index ETF tracking multiple assets could receive approval as early as this week, indicating broader access to altcoins for traditional investors.
Beyond ETFs, institutional demand for Bitcoin is extending into corporate treasuries.
Today, Metaplanet added another 463 Bitcoin to its expanding treasury, bringing the company’s total holdings to 17,595 BTC.
At current valuations, Metaplanet’s total BTC holdings are now worth over ¥261.28 billion or approximately $1.78 billion. However, the company assesses the value of its holdings even higher based on market gains, estimating its market value to be closer to $2.02 billion.
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