Investment activity in crypto funds slowed sharply for the week ending Sept. 6, with total outflows reaching $352 million despite US economic indicators pointing toward conditions that usually encourage risk-taking, according to CoinShares‘ latest report.

James Butterfill, head of research at CoinShares, said weaker employment numbers and growing expectations for a Federal Reserve rate cut in September should have acted as tailwinds.

Instead, they coincided with a 27% drop in weekly trading volumes, signaling that investors were less willing to commit new capital to digital assets. Despite the downturn, longer-term market sentiment remains positive.

According to CoinShares, year-to-date inflows stand at $35.2 billion on an annualized basis, putting the market 4.2% ahead of last year’s full-year total of $48.5 billion.

Ethereum outflows dominate

While Bitcoin products managed to pull in $524 million last week, the overall market picture was dominated by Ethereum’s struggles.

According to CoinShares, investors removed $912 million from ETH-linked products, extending a pattern of daily withdrawals across multiple issuers for seven consecutive days.

This setback reflects the slowing sentiment surrounding the digital asset, even as its inflows for the year remain robust at $11.2 billion.

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In contrast, other major altcoins, such as XRP and Solana, continued to attract steady interest, showing that institutional investors’ appetite remains large for these products.

During the reporting period, Solana logged $16.1 million in weekly inflows, marking its 21st straight positive week and bringing the year’s total to $1.16 billion. Conversely, XRP-focused funds added $14.7 million in fresh capital, pushing their 2025 inflows to $1.22 billion.

Analysts link this consistent activity to speculation surrounding the eventual approval of spot ETFs tied to both assets. Notably, Bloomberg analysts have assigned an over 90% chance of this happening.

US investors lead market redemption

Across the regions, capital movements varied as US investors led redemptions in the market.

According to CoinShares, the US led global outflows with $440 million, while Sweden and Switzerland posted $13.5 million and $2.7 million in redemptions.

At the same time, Germany topped the inflow chart with $85.1 million, followed by Hong Kong with $8.1 million. Investors in Canada, Brazil, and Australia also added modest contributions of $4.1 million, $3.5 million, and $2.1 million, respectively.

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Anas Hassan

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Anas Hassan

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Anas is a crypto native journalist and SEO writer with over five years of writing experience covering blockchain, crypto, DeFi, and emerging tech.

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September 8, 2025

Crypto investment products experienced $352 million in weekly outflows as Federal Reserve rate-cut optimism failed to boost digital asset sentiment, with Ethereum leading the exodus at $912 million while Bitcoin attracted $524 million in inflows.

CoinShares’ report shows trading volumes dropped 27% week-over-week, suggesting a cooled appetite for digital assets despite improving prospects for September interest rate cuts.

Year-to-date inflows remain strong at $35.2 billion, running 4.2% ahead of last year’s total.

Regional Divergence Amid Fed Uncertainty

The United States recorded $440 million in outflows, while Germany and Hong Kong saw inflows of $85.1 million and $8.1 million, respectively.

Ethereum products experienced daily outflows across seven consecutive trading days spanning multiple ETP issuers.

According to SosoValue, Spot Ethereum ETFs posted a record $788 million in weekly outflows, with no single fund recording net inflows.

Bitcoin spot ETFs contrasted with $246 million weekly inflows, marking two consecutive weeks of positive flows.

Solana extended its streak to 21 consecutive weeks of inflows totaling $1.16 billion year to date, while XRP reached $1.22 billion over the same period.

Both assets continue attracting steady weekly inflows of $16.1 million and $14.7 million, respectively.

The outflows occurred despite weak August payroll data that reinforced rate cut expectations. U.S. job growth slowed sharply, with unemployment rising to 4.3%, the highest level since 2021, strengthening the case for monetary easing.

According to Reuters, Standard Chartered has revised its projection to expect 50 basis point cuts at September’s Federal Open Market Committee meeting, doubling its previous forecasts.

Markets price in a 90% probability of 25-basis-point reductions with a 10% chance of larger cuts.

Similarly, Morgan Stanley and Deutsche Bank maintain that August employment data wasn’t weak enough for 50-basis-point cuts, though consecutive meeting reductions remain possible.

Fed Chair Jerome Powell previously indicated that rate cuts were possible while cautioning about persistent inflation threats.

Traditional Markets Rally While Crypto Cools

Stock markets responded positively to rate cut optimism, with S&P 500 futures gaining 0.2% on Monday following weak employment data.

European and Asian shares rose 0.3% and 0.6%, respectively, as Treasury yields held at lower levels.

Gold surged to record highs above $3,630 per ounce, gaining 38% year to date after a 27% increase in 2024.

Lower borrowing costs enhance non-yielding bullion appeal while geopolitical uncertainty drives safe-haven demand amid Fed independence concerns.

China’s central bank extended gold purchases to 10 consecutive months in August as part of dollar diversification efforts.

Additionally, Goldman Sachs projects gold could reach $5,000 per ounce if Federal Reserve independence deteriorates and investors shift from Treasuries.

The Trump administration moves to exempt gold bullion from country-based tariffs, formalizing previous customs rulings.

Political uncertainty in Japan and France contributed to dollar weakness despite rate-cut expectations supporting traditional risk assets.

Oil prices climbed more than 2% after OPEC+ agreed to slower output increases from October amid weaker global demand expectations.

Brent crude and West Texas Intermediate both posted strong gains following the production adjustment announcement.

Industry Outlook Amid Rate Cut Cycle

Earlier this month, Crypto.com CEO Kris Marszalek expected a strong fourth-quarter performance if September rate cuts materialize, citing improved liquidity conditions for risk assets.

This projection came as the exchange generated $1.5 billion in revenue last year with a $1 billion gross profit.

However, late last month, Santiment warned that social media discussion of Federal Reserve rate cuts reached an 11-month peak, historically indicating euphoric levels preceding market corrections.

Bitcoin exchange supply accumulation has risen by approximately 70,000 coins since June.

Ethereum technical indicators suggest caution despite strong price performance, with short-term MVRV approaching 15% and long-term readings at 58.5%.

These levels historically correspond with profit-taking activity and potential retracements.

Manufacturing PMI data could influence rate-cut timing, with forecasts expecting ISM Manufacturing PMI at 48.9 versus the previous 48.0. Levels below 49.5 typically extend correction periods while improvements support recovery narratives.

Amid this fed rate-cut optimism, European Central Bank President Christine Lagarde warned, in regard to Trump’s threats to the Fed chair, that undermining Fed independence would create “very serious danger” for global economic stability.

She believes that political control over monetary policy carries “very worrying” implications for worldwide markets.

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South Korean retail traders have continued to favor crypto-related stocks instead of high-profile US tech firms amid growing disappointment with companies like Tesla and the global push for digital assets.

Tesla Loses Ground, Bitmine Gains Momentum

On Monday, Bloomberg reported that Tesla stock has lost ground among South Korea’s retail investors, who ramped up their selling during August in favor of crypto-related equities.

According to the report, the electric carmaker company has seen a $1.8 billion exodus over the past four months, suggesting weakening enthusiasm among one of Tesla’s most loyal global retail investor bases.

A 33-year-old retail trader told the news media outlet that the company has been unable “to win people’s hearts” as it has “failed to lead with its own AI narrative.” The investor, who first bought the stock in 2019, sold out earlier this year to focus on equities that currently have more upside.

Bloomberg calculations of depository data revealed that while the company remains the top foreign stock among South Korean retail traders, individual investors sold approximately $657 million of Tesla stock in August, recording the company’s largest outflows since 2019.

In contrast, retail traders in South Korea favored more volatile bets in August, like crypto-related stocks. During this period, investors poured $253 million into Bitmine Immersion Technologies Inc., which is seen as a proxy for Ethereum (ETH).

As reported by Bitcoinist, South Korean investors purchased $259 million worth of Bitmine stock in July, Bloomberg previously highlighted. According to Korea Securities Depository data, this made the company the most purchased foreign security stock.

Korean Investors Pour Millions Into Crypto Stocks

Data from the Korean Center for International Finance (KCIF) showed that the percentage of crypto-linked equities in the top 50 net-bought stocks by local retail investors increased from 8.5% in January to 36.5% in June before dropping to 31.4% in July.

Citing a report from 10x Research, The Korea Times highlighted that individuals have purchased over $12 billion worth of crypto-related stock in 2025, with Bitmine, Circle Internet Group, and Coinbase leading the sector.

Retail investors’ buying spree reportedly intensified last month, as traders poured $426 million into Bitmine, $226 million into Circle, and $183 million into Coinbase. This marks a shift from the leading trend over the past few years, when Korean retail investors poured into US tech giants.

“Korean investors are pouring billions into crypto stocks, reshaping global flows in ways Wall Street can no longer ignore,” the report affirms. Adding that “the push has been amplified by U.S. and Korean stablecoin legislation, creating a powerful backdrop for this surge in capital.”

Amid the global push for digital assets regulation, the institutionalization of won-pegged stablecoins gained significant attention, with President Lee Jae-myung vowing to address it alongside the status of crypto-based exchange-traded funds (ETFs) during his electoral campaign.

Since then, multiple bills related to the issuance and distribution of KRW-pegged stablecoins have been introduced in South Korea’s National Assembly. Nonetheless, the industry has expressed concerns about the disconnect between the industry and South Korean regulators.

On September 1, the nominee for Financial Services Commission (FSC) Chairman Lee Won-eun stated that digital assets “differ from traditional financial products like deposits and securities in that they lack intrinsic value.”

In his written response to the National Assembly’s Political Affairs Committee, Lee also expressed a negative stance on specific policies related to cryptocurrencies, including whether to allow investment in virtual assets through pension and retirement accounts. This raised concerns among multiple industry players that a one-sided regulatory policy may continue.

Ethereum (ETH) trades $4,366 in the one-week chart. Source: ETHUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

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US-based crypto ETFs have witnessed a change in dynamics in August, which has seen inflows tipping towards Ethereum ETFs. However, last week’s trend of strong inflows ended with substantial outflows on Friday, with Ethereum ETFs leading the retreat with $164.64 million and Bitcoin ETFs following with $126.64 million. This sudden reversal coincides with an interesting timing of stubborn inflation data that seems to have rattled institutional investors.

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A Sudden Reversal At Week’s End

According to data from Farside Investors, US-based Spot Ethereum ETFs ended the week with $164.64 million in outflows. The outflows came from Fidelity’s FETH with $51 million, Bitwise’s ETHW with $23.7 million, Grayscale’s ETHE with $28.6 million, and Grayscale’s ETH with $61.3 million. BlackRock, on the other hand, witnessed neither inflows nor outflows into its Spot ETH ETFs, alongside 21Shares, VanEck, Invesco, and Franklin Templeton Ethereum ETFs.

Friday’s outflows were a jarring departure from the steady gain that had defined Ethereum’s Spot ETFs since August 21. Ethereum’s six-day inflow streak, which had added about $1.876 billion, was brought to an abrupt end with the outflows on Friday. As a result, total assets under management for Spot Ethereum ETFs dipped to $28.58 billion.

Ethereum ETF Flow: Farside Investors

Meanwhile, Spot Bitcoin ETFs also recorded their first daily decline since August 22 with $126.64 million in outflows on Friday. As a result, their total assets under management dropped to $139.95 billion.

However, not every issuer felt the pressure with Bitcoin. Fidelity’s FBTC led the exodus with $66.2 million, followed by ARKB’s $72.07 million and GBTC’s $15.3 million in outflows. On the other hand, BlackRock’s IBIT still managed $24.63 million in inflows and WisdomTree’s BTCW drew in $2.3 million amid the wider outflows. 

Bitcoin ETF Flow: Farside Investors

The underlying cause of the outflows can be attributed to investors digesting the latest data on inflation released on Friday. Notably, the US core Personal Consumption Expenditures (PCE) index climbed 2.9% year-over-year in July, the fastest pace since February, creating fears that the Federal Reserve may hold off on rate cuts.

What May Lie Ahead This Week

As a new trading week begins, Spot ETF flow in both Ethereum and Bitcoin is likely to depend on how investors continue to interpret the data. If inflation pressures persist, institutional investors may retreat further at the beginning of the week. However, any signs of cooling could see inflows resume mid-week, particularly into Ethereum, where fundamentals are currently favorable.

On the price side of things, Bitcoin’s hold above the $108,000 price may offer some relief. However, it needs to stay above $110,000 in order for any upside move to gain momentum. At the time of writing, Bitcoin is trading at $109,910.

Related Reading

For Ethereum, a daily close above $4,500 could confirm the return of bullish confidence, whereas a slide below $4,400 might signal further weakness. At the time of writing, Ethereum is trading at $4,470, up by 1.7% in the past 24 hours.

Featured image from Unsplash, chart from TradingView

Recent data from Bitcoin and gold ETFs revealed a departure from historical trends this month: instead of flows moving in opposite directions as they normally do, both Bitcoin and gold experienced outflows at the same time.

This rare correlation speaks volumes about the current macroeconomic environment and shifting investor psychology. Bitcoin outflows didn’t benefit gold, and until the Fed’s path is clearer, both assets remain under pressure.

Bitcoin outflows, hard assets are feeling the pain

Traditionally, when investors pull money out of Bitcoin, gold, the ultimate safe-haven asset, sees a surge in inflows, and vice versa. That’s because Bitcoin and gold are seen as alternative stores of value and hedges against traditional financial market risks.

Investors often view them as uncorrelated assets because their prices and demand don’t typically move in tandem with stocks or bonds. However, each asset appeals to different risk appetites and market conditions

Not so this month. Bitcoin ETFs recorded six straight days of outflows, draining nearly $2 billion in late August alone. Meanwhile, outflows from major gold ETFs, such as GLDM, also spiked, with $449 million exiting in just one week.

Despite record Bitcoin outflows and a broader crypto market pullback, Bitcoin ETFs rebounded toward the end of August, with a four-day inflow streak through the pullback. Gold ETFs also saw net inflows during the last days of August 2025, tracking a similar rebound as Bitcoin ETFs, and suggesting a possible change in investor sentiment as the month closes.

Macro uncertainty rules

The backdrop for this unusual behavior is a cocktail of economic crosswinds: uncertainty around Federal Reserve monetary policy, persistent inflation, and signs of a softer labor market. With the Fed’s next move unclear, Bitcoin and gold may not be especially attractive to investors seeking clarity or certainty.

Sticky inflation keeps the Fed hawkish, yet waning job growth undercuts confidence in further rate hikes.

This uncomfortable limbo leaves markets in a risk-off posture, where both speculative and defensive assets struggle to gain traction.

Waiting for the Fed’s next move

Bitcoin, often dubbed “digital gold,” inflows are stalling right now because investors aren’t feeling risk-on. Yet gold, which typically shines in periods of heightened fear, is also not benefiting from Bitcoin outflows.

Inflation concerns and shifting rate expectations are undermining gold’s historic safe-haven narrative. Instead of moving in opposition, both assets faced outflows as investors either shift to cash, seek higher-yielding alternatives, or wait for the Fed’s next move.

Until monetary policy direction becomes clearer, both Bitcoin and gold may continue to face headwinds. Macro investors value certainty, and, at the moment, ambiguity reigns.

This lethal combination makes it difficult for investors to predict whether rates will rise, a recession is coming, or inflation will surge again, leading to broader uncertainty across financial markets.

For now, Bitcoin outflows aren’t benefiting gold, and both assets are caught on the sidelines, waiting for the Fed to declare a new direction.

Spot Bitcoin and Ether ETFs recorded outflows on Friday as the Federal Reserve released key inflation data showing price pressures are creeping higher under President Donald Trump’s trade policies.

According to SoSoValue data, Ether (ETH) ETFs saw a net outflow of $164.64 million, reversing five straight days of inflows that had added more than $1.5 billion to the asset class.

Bitcoin (BTC) ETFs also turned negative with $126.64 million in net outflows, their first daily loss since Aug. 22. Total assets under management dropped to $28.58 billion for Ethereum and $139.95 billion for Bitcoin.

Fidelity’s FBTC recorded the steepest single-day outflow at $66.2 million among Bitcoin ETFs. ARK Invest and 21Shares’ ARKB followed with a $72.07 million net withdrawal, while Grayscale’s GBTC saw $15.3 million exit. Only a few funds posted minor inflows, with BlackRock’s IBIT gaining $24.63 million and WisdomTree’s BTCW adding $2.3 million.

Related: 92 crypto-related ETPs in the works: ‘Floodgates to open soon’

Fed releases hotter-than-expected core inflation

The outflows coincided with the release of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, which showed a 2.9% annualized rise in July, the highest since February.

The report, which matched forecasts, came amid growing evidence that Trump’s tariff regime is adding pressure on core prices by raising import costs, according to CNBC.

Trump’s White House has imposed a baseline 10% tariff on all imports and targeted additional categories through reciprocal duties. Though energy prices helped keep broader inflation in check, services jumped 3.6% year-over-year.

Despite the uptick in inflation, the market is still pricing in the likelihood of a Federal Reserve rate cut at its next meeting, particularly if labor market data shows further signs of weakness, per the CNBC report.

Related: US ETFs now a major source of Bitcoin spot trading volume

Ether ETFs surge as corporate treasuries fuel demand

Since their launch in July 2024, Ether spot ETFs have gained steady traction, with net inflows rising 44% in August, from $9.5 billion to $13.7 billion. Analysts attribute the growth to a rebound in institutional interest following a period of underperformance relative to Bitcoin.

Corporate treasury adoption of Ether is also accelerating. Companies now hold 4.4 million ETH, valued at over $19 billion, roughly 3.7% of total supply, according to StrategicETHReserve.

“After an extended period of underperformance relative to Bitcoin and a souring investor sentiment, Ethereum has recently experienced a significant revival in the recognition of both its adoption rate and value proposition,” Sygnum chief investment officer Fabian Dori told Cointelegraph.

Magazine: Bitcoin’s long-term security budget problem: Impending crisis or FUD?

]]> https://earlybirdsinvest.com/spot-btc-eth-etfs-see-outflows-as-inflation-ticks-up-under-trump-tariffs/feed/ 0 55846 https://earlybirdsinvest.com/eth-continues-to-outpace-btc-amid-biggest-bitcoin-etf-outflows-in-months-bitfinex-alpha/ https://earlybirdsinvest.com/eth-continues-to-outpace-btc-amid-biggest-bitcoin-etf-outflows-in-months-bitfinex-alpha/#respond Wed, 27 Aug 2025 01:22:45 +0000 https://earlybirdsinvest.com/eth-continues-to-outpace-btc-amid-biggest-bitcoin-etf-outflows-in-months-bitfinex-alpha/

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Simon Chandler

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Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,…

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August 4, 2025

Dogecoin has bounced to $0.20 in the past 24 hours as the market begins to recover — putting the current Dogecoin price prediction back in the spotlight.

While the move marks a modest uptick, it could be the start of a bigger shift in momentum for DOGE, which is still down 16% in a week and 26% over the past two weeks.

Even so, the meme coin remains up 23% in the past month and nearly 90% year-over-year, keeping it firmly on the radar of traders watching for the next explosive move.

Last week was a turbulent time for the coin and the wider market. Increased tariffs and an unyielding Federal Reserve dampened confidence among whales and institutions, which withdrew from ETFs for the first time in weeks.

Yet DOGE may have already bottomed out, with overall trajectory of the market likely to push the coin to higher levels in the next few months.

Dogecoin Price Prediction: Whale Outflows Spike as DOGE Breaks Key Support – Is a Full Breakdown Coming?

The past few days have been tough for the crypto market, with the aforementioned economic factors resulting in considerable outflows.

If we look at major crypto ETFs, we see that the seven days up to today resulted in a total outflow of $223 million, with Ethereum inflows offsetting just over $400 million in Bitcoin outflows.

This has affected Dogecoin and other meme tokens, with DOGE witnessing a steep drop in volume, from $24 billion on July 21 to $1.4 billion today.

However, the coin has seen a few significant transfers away from exchanges in recent days, including two apparent buys from Robinhood (here and here).

As such, the overall situation arguably isn’t as bad as it seemed last week, with the Dogecoin price and the wider market likely to recover from recent stressors.

And if we look at DOGE’s chart today, we see that the coin may have begun a bounce after hitting short-term lows.

Most notably, the token’s relative strength index (yellow) has begun rising again after touch 35 a couple of days ago.

One important point to make is that, despite last week’s correction, Dogecoin remains in the middle of a bull phase, having broken out of a falling wedge a couple of months ago.

Raised ETF flows have been the primary driver of recent gains, and what’s bullish is that the market is still waiting on the possible approval of numerous XRP and Solana ETFs, as well as for several other tokens.

Assuming that the SEC approves most of these later in the year, this will massively boost the Dogecoin price, which could hit $0.30 by the middle of September.

Maxi Doge Raises $300,000 in Recently Launched Presale: Is This the Next Big Meme Token?

One of the problems with Dogecoin is that it’s a well-established coin, meaning that it’s reached a size where it doesn’t make the kind of dramatic gains it did when it was younger.

However, the market is currently awash in new and interesting meme coins, with one of the newest and most intriguing being Maxi Doge (MAXI), an ERC-20 token that launched its presale this week.

With a supply of 150.24 billion MAXI, Maxi Doge has styled itself as a harder, more bullish version of Dogecoin, aimed at trading with leverage and making huge profits.

It’s currently building up a community of traders, who will share trading strategies and participate in trading competitions and challenges, with winners rewarded in MAXI.

The coin will also maintain a Maxi Fund, equal to 25% of its total supply, which it will use to support partnerships and increase liquidity.

It has already opened its Telegram channel, and will have a Discord channel coming soon, with both serving as a hub for its community.

As an Ethereum-based token, MAXI will be open for staking, enabling holders to earn a passive income.

Investors can join its presale now by going to the Maxi Doge website, where MAXI currently costs $0.0002505.

This price will rise repeatedly during the sale, so interested buyers should act now to ensure the biggest possible gains.

Click Here to Participate in the Presale

Base, a layer 2 scaling solution for Crypto Exchange Coinbase, registered with NASDAQ, has moved from the leader in 2024 to the top loser of the year in terms of capital inflows through cross-chain bridges.

Based on data from the Artemis terminal, we saw a net spill of $4.3 billion this year. This is in stark contrast to the net inflow of $3.8 billion in 2024, which was the highest of the top 20 blockchains.

Meanwhile, Ethereum, the world’s largest smart contract blockchain, registered a net inflow of $8.5 billion this year, compared to a net outflow of $7.4 billion the previous year.

Data shows that the momentum behind the base chain has slowed down, and Ethereum has regained its top spot.

Crypto-bridges are protocols that promote communication and interaction between different blockchains, improving interoperability. Therefore, bridging refers to the act of moving tokens between different networks.

Cumulative supply of stubcoin at the base has exceeded $4 billion since mid-May, along with mid-May, as shown by the chart below.

Base bleeding ETH

According to data source l2beat, the total number of ethers

The base was deposited from 1.82 million ETH to just over 835,000 ETH in four weeks.

This trend is in line with other Layer 2 solutions that have seen significant ETH spills in recent weeks, according to Michael Nadeau of Defi Report on X.

According to Coinbase protocol specialist Viktor Bunin, the outflow could be due to measurements to withdraw capital to Layer 1.

“The majority just retreat to L1. They kept a profane amount of L2. It’s unclear whether they’re getting the incentive to hold it there or not balanced across the chain that was supported,” Bunin said in X.