Federal Reserve Concerns Dampen Crypto ETP Growth, Limiting Inflows to $230M: CoinShares
Cryptocurrency exchange-traded products attracted $230 million in fresh capital over the week, though this followed $405 million in withdrawals after the FOMC meeting, with Bitcoin dominating inflows while Ether's three-week positive streak came to an end, according to CoinShares data.
Digital asset investment vehicles continued their positive flow trajectory through last week, though the pace decelerated considerably against a backdrop of escalating Middle Eastern conflicts and market participants interpreting the US Federal Reserve's stance as a "hawkish pause."
Digital currency exchange-traded products (ETPs) attracted $230 million in fresh capital over the past week, though this figure came after $405 million exited following the Federal Open Market Committee (FOMC) gathering in the United States, according to Monday's report from CoinShares.
The positive inflows marked a fourth consecutive week of gains, though the most recent figure represented a significant decline from the prior week's $1.06 billion haul.
James Butterfill, CoinShares head of research, primarily pointed to the market's interpretation of the US Federal Reserve's Wednesday session as a "hawkish pause," rather than wider geopolitical strains, as the key factor behind the deceleration.
"The intra-week data supports this," Butterfill said, pointing to robust inflows during the week's opening two days before a dramatic reversal following the FOMC meeting.
Bitcoin funds lead inflows, while Ether reverses
Bitcoin (BTC) captured virtually all crypto ETP inflows from the previous week, recording $219.2 million in positive flows. Ether (ETH) investment vehicles experienced $27.5 million in withdrawals, bringing an end to a three-week period of positive inflows.
Beyond these major assets, significant positive flows came from Chainlink (LINK) and Hyperliquid (HYPE), which attracted inflows totaling $4.6 million and $4.5 million, respectively.
Digital currency ETPs have accumulated $1.4 billion in net inflows since the start of the year, with Bitcoin ETPs commanding the lion's share at $1.2 billion. Overall assets under management currently stand at $138 billion, CoinShares data indicates.
US spot Bitcoin ETFs account for 43% of gains
Approximately half of the Bitcoin ETP capital inflows originated from US spot Bitcoin exchange-traded funds (ETFs) during the previous week, which concluded the period with $95.2 million in net positive flows.
These inflows represented a fourth straight week of positive movements totaling $2.2 billion, based on data from SoSoValue. However, despite these recent gains, spot Bitcoin ETFs continue to show negative flows on a year-to-date basis, with approximately $400 million in net outflows.
Mirroring the pattern observed in wider investment vehicles, US spot Ether ETFs were unable to sustain their inflow momentum following three consecutive weeks of positive flows, with the previous week recording approximately $60 million in total outflows.
US spot Ether ETFs have registered $599 million in net withdrawals on a year-to-date basis, while the broader ETP category showed roughly $50 million in negative territory.