Bitcoin’s $404 mln outflows vs. Ethereum’s 15-week inflow streak: What’s going on?

Key Takeaways

Digital assets saw $223 million in outflows, ending a 14-week streak. Bitcoin bore the brunt, while Ethereum continued to attract inflows. 

Digital asset investment products recorded $223 million in net outflows during the week ending the 2nd of August, the first pullback after 14 straight weeks of inflows.

Source: CoinShares

The week began strong with $883 million in inflows, but investor sentiment shifted quickly as the total crypto market cap fell 9.48%, erasing approximately $370 billion.

The trigger? A hawkish U.S. Federal Reserve tone.

Hawkish U.S. policy sparks investor sell-off

The sell-off was triggered by U.S. investors reacting to a hawkish Federal Open Market Committee (FOMC) report, which stated that,

“Inflation remains somewhat elevated.”

Following the report, U.S. investors offloaded $383 million worth of digital asset products, pushing the month-to-date outflow to $974 million, just shy of the $1 billion mark.

Investors from Germany, Sweden, and Brazil also contributed to the sell-off, collectively dumping $81 million worth of crypto products.

Source: CoinShares

Bitcoin [BTC] accounted for the bulk of outflows, recording $404 million in net losses, almost halving its month-to-date outflow of $844 million.

Sui [SUI] and Litecoin [LTC] saw relatively minor outflows of just $1 million each.

Ethereum [ETH], on the other hand, remained an outlier. It recorded its 15th consecutive week of inflows, adding $133.9 million, suggesting a shift in investor preference toward Ethereum over Bitcoin.

Meanwhile, investor interest in Solana [SOL], Ripple [XRP], and Cardano [ADA] added another $41 million in cumulative inflows.

BlackRock defies trend with aggressive accumulation

While most institutional investors exited their Bitcoin and Ethereum exchange-traded fund (ETF) positions, BlackRock took the opposite approach.

The firm’s spot Bitcoin and Ethereum iShares ETFs recorded inflows of $355.3 million and $394.2 million, respectively, suggesting that BlackRock views both assets as trading at a discount.

However, the wider institutional sentiment didn’t mirror this move. The week began with a significant sell-off.

Source: CoinGlass

According to CoinGlass, $323.5 million worth of Bitcoin spot ETFs were sold in the past day alone. The Ethereum spot ETF segment saw an even steeper withdrawal—its single-largest one-day outflow yet.

Continued selling pressure like this signals a broad divestment trend that could weigh on the prices of both Bitcoin and Ethereum.

Still, the market’s longer-term outlook remains intact.

The total assets under management (AUM) for digital asset products remain steady at $215 billion, suggesting that this could be a temporary pullback rather than a long-term reversal.