Crypto ETF Assets Dip Amid Macro Concerns; Analysts Signal Recovery

Investor outflows reached $1.9 billion across BCH and ETH exchange-traded funds over three consecutive days, the longest simultaneous drain since late March early April.

Despite significant losses last week (BTC: ~3.6%, ETH: ~5.2%) following economic headwinds including a weaker US economy and renewed trade tensions, analysts view the drop as potentially temporary.

According to Grayscale’s head of research, Zach Pandl, the recent “two steps forward, one step back” correction in crypto ETPs reflects cool-down from potential July market froth, while US macroeconomic concerns also played a role. The potential approval of new altcoin and staking ETFs are expected catalysts.

Bloomberg’s Eric Balchunas characterized the outflows as a “breather,” particularly noting the multi-billion dollar scale of Bitcoin ETPs like IBIT ($70B AUM) makes these temporary drains relatively mild, comparable to “nickel and dime” fluctuations.

The current dip follows a period of rapid inflows that saw ETF assets reach record levels, though these are now experiencing periodic drawdowns amid broader market consolidation.