Caroline Bishop
Aug 25, 2025 10:08
Digital asset funds witness significant outflows of $1.43 billion, the largest since March, due to fears over Federal Reserve actions, as reported by CoinShares.
Largest Outflows Since March
According to CoinShares, digital asset investment products have experienced their largest outflows since March, totaling $1.43 billion. This significant movement comes amid investor concerns regarding potential actions by the Federal Reserve. Trading volumes in Exchange Traded Products (ETPs) surged to $38 billion, approximately 50% higher than this year’s average, as investor sentiment fluctuated over U.S. monetary policy.
Impact on Bitcoin and Ethereum
Bitcoin (BTC) was notably impacted, with outflows reaching $1 billion. In contrast, Ethereum (ETH) showed resilience, limiting its outflows to $440 million. This divergence in performance has led to month-to-date inflows of $2.5 billion for Ethereum, while Bitcoin has seen net outflows of $1 billion. Year-to-date data reveals that Ethereum inflows account for 26% of total assets under management, compared to just 11% for Bitcoin, highlighting a shift in investor preference.
Altcoin Performance
Altcoins displayed mixed results during this period. XRP, Solana, and Cronos saw positive inflows of $25 million, $12 million, and $4.4 million, respectively. However, Sui and Ton faced challenges, with outflows of $12.9 million and $1.5 million, respectively.
FED’s Influence on Market Sentiment
Investors initially reacted with pessimism early in the week, leading to outflows of $2 billion. However, sentiment shifted following Federal Reserve Chairman Jerome Powell’s address at the Jackson Hole Symposium, which was perceived as more dovish than expected, resulting in inflows of $594 million.
For further insights, the full report can be accessed on CoinShares.
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Source: https://blockchain.news/news/digital-asset-fund-flows-experience-major-outflows-amid-fed-concerns
