Investor Sentiment Wavers as Crypto Funds See Major Outflows

After 15 straight weeks of positive inflows, cryptocurrency investment products ended last week in the red. According to a report published on Monday by crypto asset management firm CoinShares, global exchange-traded products (ETPs) experienced $223 million in outflows.

This shift comes amid cautious investor sentiment following hawkish remarks made during last week’s US Federal Open Market Committee (FOMC) meeting. The week had started strong, with $883 million flowing into crypto funds, but the trend reversed in the second half. The report attributed this to the FOMC’s tone and better-than-expected economic data from the United States.

Weekly crypto asset flows. Source: CoinShares

The report also highlighted that investors may be engaging in minor profit-taking. Over the last 30 days, crypto investment products saw net inflows of $12.2 billion, representing 50 per cent of the year’s total so far.

Fed’s Stance Cools Hopes of Rate Cut
Market expectations of a US interest rate cut in September have diminished. Federal Reserve Chair Jerome Powell’s comments led to a drop in the likelihood of a rate cut, falling from 63 per cent to 40 per cent, as reported last Thursday. The cautious approach by the Fed has contributed to the recent market pullback, reinforcing the growing link between traditional economic signals and digital asset performance.

CFTC Launches ‘Crypto Sprint’ to Implement White House Recommendations
The US Commodity Futures Trading Commission (CFTC) has launched a new initiative dubbed the “crypto sprint” to accelerate the adoption of crypto-focused recommendations from a recent White House report.

Announced by Acting Chair Caroline Pham, the CFTC plans to work in close coordination with Securities and Exchange Commission (SEC) Chair Paul Atkins and Commissioner Hester Peirce on its “Project Crypto” initiative. Pham emphasised the urgency of the mission, stating the agency is committed to advancing President Donald Trump’s vision of establishing the United States as the global centre of crypto innovation.

Satoshi Nakamoto Statue Recovered in Lugano
In a symbolic event for the global Bitcoin community, the statue of Satoshi Nakamoto in Parco Ciani, Lugano, was recovered after it was reported stolen. Municipal workers discovered the statue broken and scattered along the shore and in the waters of Lake Lugano on Saturday.

Source: CFTC

The statue, created by Italian artist and Bitcoin advocate Valentina Picozzi, is considered an important symbol of the decentralised finance movement. Satoshigallery, the art collective behind the installation, responded with a powerful message on social media: “You can steal our symbol, but you will never be able to steal our souls.”

Looking Ahead
While the market correction may indicate short-term volatility, the broader momentum in crypto remains intact with $12.2 billion in net inflows over the past month. Regulatory developments in the US and strong symbolic acts of resilience from the crypto community continue to shape the evolving narrative of digital finance.