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Digital asset markets saw a dramatic shift in sentiment last week as investment products experienced $223 million in net outflows, ending 15 weeks of inflows. The turn followed renewed anxiety regarding the U.S. Federal Reserve’s monetary policy and stronger-than-expected economic data that rekindled fears of a prolonged regime of interest rate hikes. Bitcoin ETF Outflows have raised concerns about weakening institutional confidence in the crypto sector.
The week began on a high note with inflows totaling $883 million, but optimism quickly faded. Outflows crossed the $1 billion threshold by Friday, which was one of the most significant weekly reversals of the year. Analysts are citing hawkish signs from the Fed and macroeconomic confusion as bigger reasons behind the outflows from risk assets.
A sharp Crypto market sell-off followed the latest macroeconomic data, wiping billions off digital asset valuations. Bitcoin faced large investor outflows that totaled $404 million, exposing its continuing vulnerability to macro events. Even with the drop, Bitcoin year-to-date inflows are still decent at $20 billion, which indicates that institutional interest continues to be robust.
Conversely, Ethereum had inflows of $133 million last week, meaning it extended its positive weekly run to 15 weeks. This positive result shows that investors feel increasingly comfortable with Ethereum's long-term value proposition, and it is especially timely as there is more Layer-2 development and institutional integration.
Other altcoins also attracted capital:
XRP: $31.2 million in inflows
Solana: $8.8 million
SEI: $5.8 million
Aave and SUI: modest gains of $1.2 million and $0.8 million, respectively
These figures suggest that while broader sentiment dipped, select altcoins remain attractive to investors.
Spot Bitcoin ETFs were hit hard and registered $812 million of net outflow on Friday, marking the second-largest single day in outflows ever. This brought already diminished net inflows down even further, to a total of $54.18 billion.
While Fed Rate Hike Fears loom large, Institutional Crypto Investment continues to trickle into select altcoins and blockchain ventures. Total assets under management (AUM) in Bitcoin ETFs are currently equal to $146.48 billion, 6.46% of Bitcoin's market cap.
Ethereum ETFs broke their streak of net inflows of 20 days and saw ($152 million) of net outflows. They currently have an AUM of $20.11 billion, or 4.7% of Ethereum's market cap.
Also Read: Bitcoin Price at $114K–$115K: Will Institutional Buying Drive a Rally?
Despite the pullback, institutional momentum remains strong. Bloomberg analysts have increased the chances of spot ETF approvals for Solana, XRP, and Litecoin to 95%, and they expect a multi-asset crypto index ETF to be approved soon.
In corporate news, Japanese-based Metaplanet has added 463 BTC to its balance sheet, bringing its total BTC holdings to 17,595 BTC worth over $1.78 billion, which shows a growing long-term conviction from institutional players.
