Crypto asset investment products saw heavy net outflows last week, totaling $352 million, as hopes of the Federal Reserve’s rate cut failed to improve market confidence. Ethereum products faced the steepest losses, with $912 million in outflows. Meanwhile, Bitcoin attracted investor interest, pulling in $524 million.
According to CoinShares, trading activity fell by 27% compared to the prior week, a sign that enthusiasm for crypto has cooled despite growing expectations of September rate cuts. Total inflows for 2025, however, stand at nearly $36 billion, 4.2% higher than the entire tally from 2024.
Regionally, the U.S. led with $440 million in outflows. Germany, however, drew in $85.1 million, while Hong Kong attracted $8.1 million in fresh capital.
Ether funds in particular faced pressure, recording seven straight days of withdrawals across several issuers. Data from SosoValue shows that Ether spot ETFs pulled out $788 million in just one week, with no individual product showing a net gain.
Bitcoin ETFs moved in the opposite direction, securing $246 million in inflows, extending their streak of positive flows into a second week. Solana maintained its upward momentum, now logging 21 weeks in a row of inflows worth $1.16 billion so far this year. XRP has also stayed consistent, reaching $1.22 billion. Both continue to draw steady inflows of $16 million and $14 million, respectively.
The shifts happened even as weaker U.S. labor data reinforced expectations for Fed rate cuts. Job growth slowed noticeably in August, pushing unemployment to 4.3%, its highest since 2021.
Kris Marszalek, CEO of Crypto.com, recently predicted a strong final quarter for crypto if rate cuts arrive, citing better liquidity for risk assets. However, Santiment has warned that social media excitement around Fed cuts is at its highest in nearly a year, which often signals a correction ahead.
On-chain data shows Bitcoin (BTC) exchange supply growing by roughly 70,000 coins since June. For Ether, technical indicators hint at caution, with MVRV ratios reaching levels that in the past have coincided with price pullbacks and profit-taking.
Meanwhile, U.S. equities responded positively to the outlook for lower borrowing costs. The S&P 500 rose 0.2% on Monday, while Asian and European stocks gained 0.6% and 0.3%. Treasury yields remained subdued, further supporting risk assets.
Gold rose above $3,630 per ounce, setting a new record and extending its yearly gain to 38% after rising 27% in 2024. Lower rates make gold more appealing, while geopolitical uncertainty adds to demand for the metal as a safe haven.
Major players in the crypto industry, such as Circle Internet Group Inc. (NYSE: CRCL), will be watching the market over the coming weeks to glean how investors reacts once the Fed cuts its benchmark lending rate.
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