The experience of cryptocurrency investment products declined at the beginning of September
According to Cointelegraph, publicly traded cryptocurrency investment products experienced a notable decline in inflows during the early days of September, with weekly trading volumes dropping by 27%, as reported by CoinShares. This drop in trading activity resulted in $352 million in outflows from crypto funds over the past week, despite the overall positive outlook for riskier assets following the weak jobs report in the United States and the potential for interest rate cuts in the United States.
CoinShares analysis indicates that the slowdown in activity was primarily driven by Ether (ETH) products, suggesting a decline in interest among major cryptocurrency investors. The report noted that "trading volumes fell by 27% week-on-week, coinciding with slight outflows indicating that appetite for digital assets may have cooled slightly." Ether funds experienced the largest losses in the early days of September, with $912 million withdrawn in a single week. In contrast, Bitcoin (BTC) products saw inflows of $524 million, helping to alleviate broader market weakness.
Geographically, US-listed funds faced outflows of $440 million last week, while Germany recorded inflows of $85 million. Publicly traded crypto funds provide investors with exposure to digital assets without needing to buy or manage cryptocurrencies directly. These investment vehicles, traded through traditional brokers, aggregate crypto tokens into shares that track the underlying price, making them an appealing option for institutional investors seeking access to the crypto market.
Despite the recent decline in interest in crypto ETF funds, flows in 2025 remain ahead of last year's performance, indicating that "broadly speaking, sentiment remains intact," according to CoinShares. Outflows from ETH funds are likely driven by profit-taking and macroeconomic trends. Jillian Friedman, CEO of the crypto staking protocol Symbiotic, commented on the slowdown in demand for ETH ETF funds, describing them as "risk asset games" and attributing the outflows to "profit-taking near historical highs and macroeconomic conditions."
Friedman noted that US cash ETH funds currently hold about $26 billion in assets under management, with BlackRock controlling over $16 billion in ETHA. This represents only a fraction of the total ETH market but highlights a shift in capital rather than a collapse in narrative. The cash Ether price has remained relatively stable over the past week, ranging between $4,450 and $4,273, according to Cointelegraph indicators. Vincent Liu, Chief Investment Officer at Chronos Research, recently stated that ETH "is entering a profit-taking period," and inflows to Bitcoin ETF funds suggest a move towards hard assets, such as gold, amid macroeconomic uncertainty.$ETH
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