Crypto Funds faced a turbulent shift last week. According to CoinShares’ latest report, outflows hit $1.43 billion, marking the steepest withdrawal since March. Yet, at the same time, investors were unusually active. Trading volumes in exchange-traded products (ETPs) soared to $38 billion, far above this year’s typical levels. The shift highlighted just how uncertain investors are over the direction of U.S. monetary policy. Fed Speech Turns Crypto Funds Outflow Into Fresh Inflows Reportedly , the past week underscored how sensitive the digital asset market remains to signals from the Federal Reserve. Investors were initially worried that the U.S. Federal Reserve might take a tougher stance on interest rates. Fear of tighter policy drove nearly $2 billion out of the crypto market in just a few days. However, things changed after Fed Chair Jerome Powell spoke at the Jackson Hole meeting. His comments were softer than expected, which lifted confidence and brought nearly $600 million back into crypto later in the week. This shows how quickly investor sentiment can turn around. Ethereum Funds Outpace Bitcoin With Stronger Recovery Recent market swings affected digital asset funds differently, with Ethereum (ETH) bouncing back more strongly than Bitcoin (BTC). Investor caution early in the week weighed heavily on Bitcoin-based investment products, which saw a sharp $1 billion in outflows. This bearish momentum comes as the naysayers are criticizing Bitcoin’s market performance , despite recording gains as the year progressed. Ethereum funds also faced pressure but recovered more quickly. After a mid-week recovery, Ethereum’s outflows were held to $440 million, showing its strength. Since the start of the month, Ethereum funds have gained $2.5 billion in inflows , while Bitcoin has lost $1 billion. This change has shifted investor confidence between the two biggest digital assets. Ethereum’s inflows now account for 26% of its total assets under management this year, a figure more than double Bitcoin’s 11%. The numbers show that more investors now prefer Ethereum in the current market. Altcoins See Mixed Investor Moves The action was not only in Bitcoin and Ethereum funds. Several altcoins also saw big changes. XRP led with $25 million in new inflows, showing fresh interest. Solana funds added $12 million, while Cronos brought in $4.4 million. However, not all tokens were gained. Sui faced the biggest loss with $12.9 million in outflows, and TON saw $1.5 million withdrawn. Ethereum’s stronger performance compared to Bitcoin shows that investor confidence is diversifying beyond the flagship crypto . At the same time, the inflows into some altcoins prove that investors are still looking for growth beyond the biggest assets. With U.S. monetary policy still in focus, money moving in and out of digital assets is likely to stay unpredictable. The post Crypto Funds Face Largest Outflow as Fed Signals Stir Markets appeared first on TheCoinrise.com .
