Crypto ETPs experienced significant losses, totaling $1.43 billion in outflows as investor sentiment turned negative following declines in Bitcoin and Ether prices. The downturn marked the largest outflow since March, reversing a brief trend of inflows that had accumulated $4.3 billion over the previous two weeks. Bitcoin dropped from over $116,000 to $112,000, while Ether fell below $4,100. The sell-off was attributed to growing concerns about the Federal Reserve's policies, resulting in early week outflows exceeding $2 billion. However, after a more dovish tone from Federal Reserve Chair Jerome Powell, the market saw some recovery, with $594 million in inflows later in the week. Among the outflows, Ether recorded about $430 million on Tuesday alone, while Bitcoin saw over $1 billion in losses. Notably, Ethereum had a more favorable year-to-date inflow versus Bitcoin, which raised concerns about the shifting investor preferences between the two cryptocurrencies.

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