Recording outflows hit cryptocurrencies, but Ethereum may flip the table on Bitcoin

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Crypto Asset investment products have recorded their most important outflows in a few months as investor sentiment has dropped sharply in signals from U.S. currency policymakers. According to a new report from Coinshares, a total of $1.43 billion in crypto-invested vehicles last week, the heaviest weekly traffic since March.

Coinshares noted that the volume (ETP) in exchange-traded products rose to $38 billion during the same period, about 50% higher than the 2025 average.

Increased trading activity reflects polarized market sentiment as investors weigh the Fed’s policy outlook. James Butterfill, head of research at Coinshares, explained:

The first part of the week recorded a $2 billion outflow, but the mood shifted after Jerome Powell’s address at Jackson Hole workshop, which many thought was more than expected. By the end of this week, we saw $594 million inflows.

Differences between Bitcoin and Ethereum Streams

Despite the overall pressure on the market, Bitcoin and Ethereum have performed differently. Bitcoin was the first to lose about $1 billion, while Ethereum had even higher outflows at $440 million.

The mid-week rebound particularly likes Ethereum, which now shows a net inflow of $2.5 billion, while Bitcoin’s flow bid is $1 billion.

This shift has adjusted the year-to-date picture of both assets. Ethereum inflows now account for about 26% of total assets managed (AUM), while Bitcoin accounts for only 11%.

This may indicate a change in the way institutional investors distribute capital between two leading cryptocurrencies, the report notes.

The role of Ethereum in most two-layer networks and expectations of wider adoption through ETFs may support this trend, and Bitcoin continues to face challenges related to its macroeconomic narrative as it is “digital gold.”

Altcoin performance reflects wider market rotation

In addition to Bitcoin and Ethereum, AltCoins also records different results. Several tokens have published positive inflows, including XRP ($25 million), Solana ($12 million) and Cronos ($4.4 million).

These movements demonstrate selective confidence in certain blockchain ecosystems, especially those with strong user activity or institutional exposure.

Instead, some projects face headwinds. SUI ($12.9 million outflow) and TON ($1.5 million outflow) are among the most affected, reflecting investors’ cautious or profitable assets that were run speculatively earlier this year.

Butterfill pointed out that trade behavior remains highly sensitive to regulatory development and macroeconomic expectations, and U.S. monetary policy continues to act as the main driver of crypto investment flows.

Looking ahead, it is expected that as the market digests further policy signals and macroeconomic data, fund traffic will remain volatile. However, the comparative performance between Bitcoin and Ethereum suggests that investors may become increasingly diversified in digital assets rather than viewing the industry as a single homogeneous market.

Feature images created with DALL-E, TradingView’s chart

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