Ethereum Leads Crypto Fund Inflows as Bitcoin Sees Continued Outflows Amid Fed Uncertainty

Digital asset investment products recorded $224 million in net inflows last week, marking the seventh consecutive week of gains and bringing the seven-week total to $11 billion. According to CoinShares, Ethereum-based funds outperformed all other assets, attracting $296.4 million—their largest weekly inflow since the 2020 US election and pushing Ethereum’s seven-week total to $1.5 billion. This signals renewed institutional confidence in Ethereum, positioning it as the primary beneficiary in the current market climate. In contrast, Bitcoin funds experienced $56.5 million in outflows for the second straight week, indicating rising caution among investors amid ongoing uncertainty about the US Federal Reserve’s stance on inflation and interest rates. Short-Bitcoin products also saw outflows. Regionally, the United States led fund inflows with $175 million, followed by Germany, Switzerland, Canada, and Australia. Hong Kong and Brazil recorded notable outflows, with Hong Kong’s inflow streak following its spot ETF launches coming to an end. Most altcoins remained flat, except for Sui, which registered a modest $1.1 million inflow, and Chainlink, which also saw minor positive flows. XRP continued a downward trend with $6.6 million in outflows, while Solana and Cardano also faced withdrawals. These trends highlight a cautious but slightly bullish market sentiment, with some capital rotating out of Bitcoin and into Ethereum, or remaining on the sidelines as traders await more clarity on US monetary policy. This dynamic is likely to influence trading strategies, volatility, and price trends across both leading cryptocurrencies and select altcoins.