Crypto Funds Face Record $6.4 Billion Outflows Over Five Weeks
Bitcoin and Ethereum ETFs lead the downturn as macroeconomic and geopolitical pressures weigh on investor sentiment.
- Digital asset investment products have experienced $6.4 billion in outflows over five weeks, marking the worst stretch on record, according to CoinShares.
- Bitcoin-focused ETFs in the U.S. accounted for $5.4 billion of the outflows, the largest streak since their launch in January 2024.
- Macroeconomic concerns, including inflation, trade tensions from new tariffs, and anticipation of the Federal Reserve's policy decision, are driving risk-averse behavior among investors.
- Bitcoin's price has dropped 21% over the last three months, trading around $83,000, while Ethereum has seen a 42% quarterly decline, reflecting broader market weakness.
- Analysts suggest the Federal Reserve's decision on interest rates this week could influence crypto market trends, with potential optimism if borrowing costs are reduced.