Bitcoin exchange-traded funds (ETFs) experienced significant outflows totaling $645 million over two trading days as institutional investors shifted capital from the crypto markets. This move marked a notable reversal from a previous inflow of $4.7 billion between mid-July and early August. The selloff, attributed to a cautious approach ahead of Federal Reserve Chair Jerome Powell's speech at the Jackson Hole meeting, saw Fidelity's FBTC ETF leading the redemptions with $246.9 million withdrawn. Analysts suggest that the market is currently characterized by tactical de-risking rather than a broader institutional exit. Outflows from Ethereum funds mirrored this trend, with $196.6 million and $422.2 million withdrawn on the same days. Despite the significant outflows, Bitcoin's price declined only marginally, indicating that institutional sentiment remains cautious but not panicked. The market now awaits clearer monetary policy direction following the upcoming speech from Powell, which is expected to influence further trading activity.

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