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August 26, 2025Bitcoinist logoBitcoinist

Record Outflows Hit Crypto Funds, But Ethereum May Be Turning the Tables on Bitcoin

Crypto asset investment products recorded their most significant outflows in months, as investor sentiment swung sharply amid signals from US monetary ￰0￱ to the latest report from CoinShares, a total of $1.43 billion exited crypto investment vehicles last week, the heaviest weekly outflow since ￰1￱ noted that trading volumes in exchange-traded products (ETPs) rose to $38 billion over the same period, around 50% above the 2025 ￰2￱ increase in trading activity reflected polarized market sentiment, as investors weighed the Federal Reserve’s policy ￰3￱ Butterfill, head of research at CoinShares, explained: Outflows of $2 billion were recorded in the first part of the week, but sentiment shifted after Jerome Powell’s address at the Jackson Hole Symposium, which many interpreted as more dovish than ￰4￱ the end of the week, we saw inflows of $594 ￰5￱ Between Bitcoin and Ethereum Flows While the market overall faced pressure, the performance of Bitcoin and Ethereum ￰6￱ bore the brunt of outflows, losing around $1 billion, while Ethereum’s outflows were more limited at $440 ￰7￱ mid-week rebound particularly favored Ethereum, which now shows $2.5 billion in net inflows month-to-date, compared to Bitcoin’s $1 billion in ￰8￱ shift has adjusted the year-to-date picture for both ￰9￱ inflows now represent about 26% of total assets under management (AuM), while Bitcoin accounts for just 11%.

The report pointed out that this could signal a change in how institutional investors are allocating capital between the two leading cryptocurrencies. Ethereum’s role in most layer two networks and the anticipation around broader adoption through ETFs may be supporting this trend, while Bitcoin continues to face challenges tied to its macroeconomic narrative as “digital gold.” Altcoin Performance Reflects Broader Market Rotation Beyond Bitcoin and Ethereum, altcoins recorded mixed ￰10￱ tokens posted positive inflows, including XRP ($25 million), Solana ($12 million), and Cronos ($4.4 million). These movements suggest selective confidence in certain blockchain ecosystems, particularly those with strong user activity or institutional exposure.

Conversely, some projects faced ￰11￱ ($12.9 million outflows) and Ton ($1.5 million outflows) were among the most affected, reflecting investor caution or profit-taking in assets that had seen speculative runs earlier in the ￰12￱ noted that trading behavior remains highly sensitive to both regulatory developments and macroeconomic expectations, with US monetary policy continuing to act as a key driver of crypto investment ￰13￱ ahead, it is expected that fund flows will remain volatile as markets digest further policy signals and macroeconomic data . However, the contrasting performance between Bitcoin and Ethereum suggests that investors may increasingly diversify within digital assets, rather than treating the sector as a single, homogeneous ￰14￱ image created with DALL-E, Chart from TradingView

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