Crypto ETF Outflows Spark Uncertainty Amidst Market Shifts

U.S. cryptocurrency exchange-traded funds (ETFs) experienced significant net outflows, with Bitcoin shedding $523 million and Ethereum losing $422.3 million as of August 19th. This trend suggests major adjustments in institutional portfolios may be underway. Fidelity’s FBTC and FETH saw the most significant outflows while Grayscale offerings also struggled. BlackRock reported no notable changes. These shifts point to a cautious approach from investors, particularly following unexpected Producer Price Index data and the possibility of no interest rate cuts by the Federal Reserve in September.