Bitcoin ETFs Bled $643M In Outflows Last Week, Ethereum $98M, Analysis Shows

Digital asset investment products experienced substantial outflows totaling $726 million last week, matching the largest recorded outflow set in March this year.

What Happened: This shift in investor sentiment comes amid uncertainty surrounding potential Federal Reserve interest rate cuts and highlights the volatile nature of the cryptocurrency market.

According to a new report by CoinShares, the outflows were predominantly concentrated in the United States, which accounted for $721 million of the total.

Bitcoin BTC/USD bore the brunt of the exodus, with $643 million in outflows, while Ethereum followed with $98 million.

Also Read: Bitcoin Rally On Horizon As August Jobs Data Signals Potential, Say Experts

James Butterfill, Head of Research at CoinShares said, “We believe this negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point interest rate cut by the U.S. Federal Reserve.”

Interestingly, the report noted a divergence in regional sentiment.

While the U.S. and Canada experienced significant outflows, European markets, particularly Germany and Switzerland, showed resilience with inflows of $16.3 million and $3.2 million, respectively.

What’s Next: With investors increasingly looking for signs of stability, key discussions around these challenges will be addressed at Benzinga's Future of Digital Assets event on Nov. 19, where industry leaders will explore the next steps for the evolving crypto landscape.

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