Crypto ETPs Hit $1.43B Outflows as Fed Pessimism Grows

• Investors pulled $1.43 billion from crypto ETPs, the largest outflow since March 2025.
• Diverging trends emerged as Bitcoin saw sharp outflows, while Ether demonstrated relative resilience.

On August 25, 2025, Cointelegraph reported that crypto exchange-traded products (ETPs) recorded $1.43 billion in investor outflows, the highest since March 2025. This coincided with notable price declines in Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization. The withdrawals underscored investor concerns amid ongoing uncertainty surrounding U.S. monetary policy.

Investor sentiment was strongly influenced by developments earlier in the week. Approximately $2 billion flowed out of crypto ETPs due to pessimism over the Federal Reserve's stance. Concerns about potential tightening of U.S. monetary policy drove significant withdrawals during this period.

A shift in sentiment occurred midweek following remarks by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Powell’s statements, interpreted as more dovish than expected, helped restore some confidence. This prompted inflows of $594 million into crypto ETPs, partially recovering the week’s total outflows.

Bitcoin experienced significant outflows during this period, with over $1 billion pulled from its ETPs. This decline highlighted growing concerns among investors about Bitcoin’s market trajectory amidst broader macroeconomic uncertainty. Year-to-date, Bitcoin inflows accounted for just 11% of total assets under management in crypto ETPs.

Ether, on the other hand, displayed relative strength. While Ether ETPs still recorded outflows of $440 million during the week, strong midweek recovery tempered the losses. Ether demonstrated a positive trend in month-to-date flows, with inflows totaling $2.5 billion. Ether products also represented 26% of total crypto assets under management year-to-date, significantly outperforming Bitcoin.

The altcoin market witnessed mixed activity during the same period. XRP and Solana (SOL) recorded inflows of $25 million and $12 million, respectively. In contrast, Sui (SUI) and Toncoin (TON) saw outflows of $13 million and $1.5 million, respectively, reflecting diverging investor sentiment toward lesser-traded cryptocurrencies.

As of August 25, 2025, 16:09 UTC, Bitcoin (BTC) is trading at $112,334.44 with a 1.79% decrease, according to market data. Ethereum (ETH) is priced at $4,621.51, showing a 4.05% decline. Meanwhile, XRP is valued at $2.95 with a 2.15% decrease, and Solana (SOL) is trading at $196.73, reflecting a 4.56% decline. Sui (SUI) is priced at $3.46 with a 4.89% drop, while Toncoin (TON) stands at $3.21, down by 3.78%.