Institutional crypto products have just experienced their heaviest week of redemptions since March, with major issuers such as BlackRock, Grayscale, and Fidelity recording $1.4 billion in combined outflows, according to CoinShares data.
The sell-off hit bitcoin funds hardest, with roughly $1 billion withdrawn in a matter of days. Ether products also saw significant pressure, losing about $440 million. The exodus was concentrated in the U.S., Sweden, and Switzerland, though Canada and Germany managed to attract small inflows, partially offsetting the damage.
CoinShares head of research James Butterfill noted that the week started with nearly $2 billion in outflows before sentiment flipped following Federal Reserve Chair Jerome Powell’s Jackson Hole speech. His remarks, seen as more dovish than expected, sparked a late-week recovery that brought in about $594 million of fresh inflows.
Macro Uncertainty Weighs on Sentiment
The reversal highlights how tightly crypto markets are tethered to macroeconomic cues. Powell’s hints at possible rate cuts briefly lifted risk appetite, though traders remain wary of political and trade risks, particularly from President Trump’s tariff stance. The Block reported a parallel surge in crypto prices as Powell spoke, underscoring the market’s sensitivity to central bank signals.
Despite the heavy withdrawals, month-to-date flows remain more favorable for ether, which has still attracted around $2.5 billion in inflows. Bitcoin, by contrast, has shed roughly $1 billion over the same period.
Altcoins Post Mixed Results
Outside the majors, altcoin-linked products showed a mixed picture. XRP pulled in $25 million, Solana added $12 million, and Cronos attracted $4.4 million. Meanwhile, Sui and Toncoin faced net redemptions of $12.9 million and $1.5 million, respectively.
Big Picture
The latest turbulence underscores the fragility of institutional positioning in crypto. While large inflows remain possible when macro conditions improve, outflows from bitcoin and ether funds show how quickly sentiment can sour when volatility rises.
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Source: https://coindoo.com/investors-flee-bitcoin-and-ethereum-funds-in-biggest-exodus-since-march/