Crypto ETFs Lose $1,4 Billion Amid BTC and ETH Selloff
Bitcoin and Ethereum exchange-traded funds lost $1,43 billion last week, ending a two-week influx that raised $4,3 billion.
The outflow comes as Bitcoin has fallen from $116,000 on August 18 to $112,000 by the end of the trading week. Ethereum fell below $4100 last Tuesday after trading at around $4250 the day before, according to CoinGecko.
Last week’s losses were the second-largest outflow ever for Ethereum spot funds. The $1,4 billion outflow from crypto funds was the largest since March 2025, according to James Butterfill, head of research at CoinShares. He attributed the selloff to “growing polarization” in investor sentiment on U.S. monetary policy, as well as pessimism about the Fed’s stance.
However, sentiment changed at the end of the week after Jerome Powell’s speech at the Jackson Hole Symposium was widely seen as more dovish than expected, leading to $594 million in investment, he added.
According to the expert, cryptocurrency flows remain very sensitive to macroeconomic signals and positioning on exchange derivatives, with “larger-cap assets bearing the brunt of rising volatility.”
