Crypto investment products shed $1.4 billion last week, marking largest outflows since March

Crypto investment products saw their largest week of outflows since March, totaling $1.43 billion last week, led by Bitcoin (BTC) and Ethereum (ETH).

Bitcoin, Ethereum lead largest outflows since March

Global crypto investment products recorded $1.43 billion in outflows last week, the largest since March, according to James Butterfill, Head of Research at CoinShares, in a Monday report.

Bitcoin products saw the largest outflows, with an exodus of $1 billion last week, while Ethereum products shed $440 million.

The sell-offs were largely driven by cautious sentiment among investors prior to Federal Reserve (Fed) Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on Friday, noted Butterfill.

Investors' pessimism about the Fed's possible interest rate decision pushed the market downwards early in the week, with outflows reaching $2 billion. However, sentiments quickly reversed after Powell's speech hinted at the likelihood of a more dovish Fed policy stance, with Ethereum leading a market-wide recovery.

"This shift in tone was more strongly reflected in Ethereum than in Bitcoin. Ethereum saw a sharp mid-week recovery," wrote Butterfill.

Ethereum products have also netted $2.5 billion in month-to-date inflows, accounting for 26% of its total net flows this year. On the other hand, Bitcoin products have seen $1 billion in outflows month-to-date, signaling a growing shift in investor sentiment toward ETH.

Bitcoin is changing hands at $112,500, down 1.5%, while Ethereum is trading around $4,590, down 6% over the past 24 hours.

Meanwhile, altcoin products, including XRP, Solana and Cronos saw inflows of $25 million, $12 million, and $4.4 million, respectively, last week. Sui and Ton suffered outflows of $12.9 million and $1.5 million.