Crypto ETPs saw their biggest losses since March as outflows totaled $1.43 billion amid investor sentiment becoming “polarized,” CoinShares’ James Butterfill reported.
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Cryptocurrency investment products reversed an emerging inflow trend, with significant outflows last week as Bitcoin and Ether prices declined.
Global crypto saw $1.43 billion of outflows last week, ending a two-week inflow run that brought in $4.3 billion, CoinShares on Monday.
The outflows came amid Bitcoin () from above $116,000 on Aug.18 to $112,000 by the end of the trading week, while Ether () below $4,100 on Tuesday after starting the week at around $4,250, according to CoinGecko.
Last week’s losses marked the second-biggest outflows on record for spot Ether , with almost $430 million withdrawn on Tuesday alone, to SoSoValue.
Largest outflows since March
According to CoinShares’ head of research, James Butterfill, the $1.4 billion in outflows from crypto funds were the biggest losses since March 2025.
Butterfill attributed the sell-off to “increasingly polarized” , with pessimism around the Federal Reserve’s stance driving $2 billion outflows early in the week.
“However, sentiment shifted later in the week following Jerome Powell’s address at the Jackson Hole Symposium, which was widely interpreted as more dovish than expected, sparking inflows of $594 million,” he added.
Shift in tone reflected in Ethereum
Butterfill said the shift in tone was more strongly reflected in Ether, which saw a sharp mid-week recovery, resulting in $440 million of outflows.
Bitcoin ETPs saw significantly bigger outflows, totaling more than $1 billion.
The analyst emphasized a notable change in investor sentiment toward Bitcoin and Ether given the month-to-date inflows, where Bitcoin has experienced $1 billion outflows versus Ether’s $2.5 billion of inflows.
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“Inflows year-to-date for Ethereum represent 26% of total assets under management compared to just 11% for Bitcoin,” Butterfill added.
In the meantime, flows were mixed, with XRP (XRP) seeing $25 million in inflows, Solana (SOL) posting $12 million gains, while Sui (SUI) and Toncoin (TON) saw outflows of $13 million and $1.5 million, respectively.
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