Ethereum sees $169 million outflow, but traders aren’t giving up on leveraged bets

Optimism over possible rate cuts fueled $921 million inflows into digital asset investment products,

Ethereum-based investment products recorded their first weekly outflows in five weeks, with $169 million, after steady withdrawals every day. Despite this, demand for dual-leveraged Ethereum ETPs remained strong, indicating that traders were still interested in exposure to risky assets.

This comes as total digital asset investment products attracted $921 million inflows after a “choppy” few weeks. The partial U.S. government shutdown has clouded the macroeconomic outlook, limited access to crucial policy data and created uncertainty about the Federal Reserve’s next steps.

However, Friday’s softer-than-expected CPI report revived optimism that more rate cuts could come this year. Meanwhile, global ETP trading activity remained high, with volume reaching $39 billion this week. This figure is well above the annual average of $28 billion.

Bitcoin is pulling ahead

In the latest edition of ‘Digital Asset Fund Flows Weekly Report’, CoinShares reports reported Bitcoin investment products attracted $931 million in inflows this week, increasing total inflows since the US Federal Reserve’s rate cuts began to $9.4 billion. Year-to-date (YTD), inflows now stand at $30.2 billion, still lower than the $41.6 billion recorded in 2024. Short Bitcoin products also saw positive sentiment as this cohort attracted $14.4 million in new capital.

Enthusiasm for Solana and XRP has waned ahead of the expected launch of US ETFs, with inflows of $29.4 million and $84.3 million respectively. Multi-asset funds followed with inflows of $33.2 million, while Litecoin and Chainlink posted smaller gains of $0.3 million and $0.1 million over the same period.

Of the assets that saw outflows, Sui followed Ethereum’s lead and recorded $8.5 million, and Cardano saw outflows of $0.3 million.

Regional inflows were led by the US with $843 million, while Germany had one of its biggest weeks yet with $502 million. Brazil and Australia posted smaller profits of $13.2 million and $0.9 million, respectively. On the other hand, Switzerland saw an outflow of $359 million, although this was largely technical in nature and related to the transfer of assets between providers.

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Sweden mirrored this trend with outflows of $49 million, and both Hong Kong and Canada recorded modest declines of $11.2 million and $10 million respectively.

Markets are preparing for trade talks between Trump and Xi

According to QCP Capital, crypto markets are come in a crucial intersection this week as global and domestic catalysts converge. All eyes are on the upcoming Trump-Xi meeting, as any progress on a US-China trade deal is expected to boost investor confidence and risk appetite, lifting Bitcoin and other assets out of their October stagnation.

However, much depends on the Federal Reserve’s decision regarding its quantitative tightening program. Moreover, the prolonged US government shutdown and weak stock sentiment threaten to dampen momentum. With BTC trading flat and risk reversals turning neutral, markets appear cautiously positioned. Until Bitcoin reclaims the $116,000 level, the digital asset trading platform expects range-bound trading as crypto waits for its next macro-driven breakout.