Bitcoin and Ethereum funds shed over $876 million in the past week due to market uncertainty. The large outflow was mainly attributed to the Oct 10 flash crash and growing concerns about a December rate cut from the Federal Reserve.
The Fidelity Wise Original Bitcoin Fund and BlackRock’s iShares Bitcoin and Ethereum funds accounted for most of the withdrawals, with Fidelity losing $438 million and BlackRock losing $876 million. The outflow was partly due to traders expecting a 91.7% chance of another rate cut in December but now sees that probability drop to 64.6%.
Historically, Federal Reserve rate cuts boost capital into riskier assets like equities and digital assets, making it a bearish signal for crypto traders. However, Solana defied the trend with $118 million in weekly inflows and $2.1 billion over nine weeks.
In contrast, altcoin funds like Solana have seen consistently positive flows. The Bitwise Solana ETF saw its first full week of trading, accumulating more than $126 million in net inflows. Other notable altcoins like HBAR and Hyperliquid also received significant investments, indicating a growing demand for alternative assets.
Source: https://decrypt.co/347939/bitcoin-ethereum-etfs-shed-more-1-billion-last-week