Cryptocurrency investment products closed last week in negative territory, breaking a 15-week streak of consecutive inflows as investor sentiment soured following hawkish signals from the Federal Open Market Committee (FOMC) meeting.
According to a Monday report from crypto asset manager CoinShares, global crypto exchange-traded products (ETPs) experienced $223 million in outflows last week.
The week began on a strong note with $883 million in inflows, but momentum reversed in the latter half, “likely triggered by the hawkish FOMC meeting and a string of stronger-than-expected U.S. economic data,” the report noted.
“Given we have seen US$12.2bn net inflows over the last 30 days, representing 50% of inflows for the year so far, it is perhaps understandable to see what we believe to be minor profit taking.”
U.S. Federal Reserve Chair Jerome Powell’s comments further weighed on investor sentiment, lowering the probability of a September interest rate cut to 40%, down from 63% prior to the FOMC meeting, according to a report published last Thursday.
The shift in outlook comes as Bitcoin heads into August—traditionally one of its weakest months. Data from CoinGlass reveals that Bitcoin’s median return for August is -7.49%.
Bitcoin investment products bore the brunt of last week’s losses, recording $404 million in outflows. Despite the downturn, some analysts remain optimistic about Bitcoin’s prospects in the coming months.
In a research note released last Friday, Matrixport suggested that Bitcoin may regain momentum once the U.S. Congress returns from its summer recess after Labor Day.
“Fiscal uncertainty has historically served as a strong tailwind for hard assets, and Bitcoin continues to play a central role in that narrative,” the report stated.
Ether defies broader fund retreat
Despite overall outflows from global cryptocurrency funds, Ether ETPs marked their 15th consecutive week of net inflows, drawing in $133 million—even as momentum eased in the latter half of the week.
The report credited the sustained interest in Ether products to “robust positive sentiment for the asset.”
Meanwhile, crypto funds targeting XRP, Solana, and Sui also ended the week in positive territory, recording inflows of $31.2 million, $8.8 million, and $5.8 million, respectively.
On Thursday, U.S. President Donald Trump signed an executive order imposing reciprocal import tariffs ranging from 15% to 41% on goods from 68 countries, set to take effect on August 7.
While the August 1 tariff announcement sent a “chill through global markets,” the cryptocurrency sector experienced more of a “recalibration” than a full-scale retreat, according to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo.
“The digital asset market remains solidly above $3.7 trillion, supported by structural inflows, institutional confidence, and the prospect of clearer U.S. regulation,” she told Cointelegraph, adding that “altcoin stability may gradually return.”
