Spot Bitcoin ETFs snapped a four-week run of gains last week, posting $296 million in net outflows after pulling in more than $2.2 billion earlier in the month. The crypto reversal was swift — and it wasn’t limited to Bitcoin.
Ether Takes The Hardest HitSpot Ether ETFs also recorded $206 million in outflows for a second straight week, a sign that institutional demand for the second-largest cryptocurrency has been cooling steadily.
A small group of investors even moved in the opposite direction — short-Bitcoin products drew $4 million in fresh capital, suggesting some are betting on more losses ahead.
Across the board, total assets under management in digital asset products dropped to close to $130 billion.
The most consequential of the three may be the rate outlook. Expectations heading into the June Federal Open Market Committee meeting moved away from potential cuts and toward possible hikes — a major shift that historically pushes investors away from riskier assets.
Digital assets tend to feel that pressure quickly. When borrowing costs look like they’re going up, money moves toward safer ground.
A Five-Week Streak Comes To An EndThe $414 million in total outflows snapped what had been five consecutive weeks of inflows. Data from CoinShares shows the pullback reflected a broader shift toward risk-off behavior among investors, driven more by macroeconomic forces than anything specific to crypto markets.
Whether last week marks a turning point or a brief pause will likely depend on what signals come out of the Fed in the weeks ahead. For now, the money has moved — at least temporarily — to the sidelines.
Featured image from Getty Images, chart from TradingView
