US Crypto Funds Suffer Sharp Sell-Off as Institutional Interest Wavers

The US spot exchange-traded funds (ETFs) linked to cryptocurrencies have experienced a sharp slowdown in previous gains, disrupting positive net outflow streaks. After five consecutive days of dynamic capital inflows, American spot funds for Ethereum recorded a noticeable cooling of institutional investor sentiment, with net outflows reaching $70.62 million on Friday.

This marks the end of a successful streak that had lasted since mid-month, during which Ethereum-dedicated funds attracted as much as $211.25 million in net capital. Despite this, the overall weekly balance remains positive for Ethereum, closing with a net inflow of $103.9 million and totaling $337.74 million in July.

Similar trend reversals have been observed in the market for Bitcoin-dedicated funds, where investors have taken profits, resulting in a net outflow of $240.08 million on Friday. However, like Ethereum, the weekly balance for Bitcoin turned out to be positive, amounting to $103.9 million.

Market experts attribute this price drop to rising yields of U.S. Treasury bonds, which increase expectations for a more hawkish monetary policy from the Federal Reserve regarding interest rates.