Under the harsh remarks from the Federal Reserve's Open Market Committee (FOMC) meeting last week, cryptocurrency investment products ended 15 weeks of continuous inflows and turned to net outflows.
According to the latest report from cryptocurrency asset management firm CoinShares, global crypto exchange-traded products (ETPs) saw outflows of $223 million last week.
Despite inflows reaching $883 million earlier this week, the trend reversed, and the report suggests this may be influenced by remarks after the Federal Reserve meeting and a series of better-than-expected economic data.
"In the past 30 days, we have seen a net inflow of $12.2 billion, accounting for 50% of the total inflow this year, so a small amount of profit-taking is understandable."
Comments from Federal Reserve Chairman Powell also lowered investor expectations for a rate cut in September, reducing the probability from 63% before the meeting to 40%.
As Bitcoin (BTC) enters traditionally underperforming August, investor sentiment has declined. CoinGlass data indicates a median return of -7.49% for Bitcoin in August.
Bitcoin products faced most losses last week, with outflows amounting to $404 million. Nevertheless, some analysts believe the next catalyst may come after the summer recess.
Ethereum goes against the trend.
Despite outflows from global crypto funds, Ethereum (ETH) ETPs garnered net inflows for 15 consecutive weeks, attracting $133 million in investments. The report attributes this to the strong positive sentiment around the asset.
Crypto funds focused on XRP, Solana (SOL), and Sui achieved net inflows of $31.2 million, $8.8 million, and $5.8 million, respectively.
Despite President Trump's tariff orders causing market turbulence, the crypto market performed robustly with no significant pullback.
