Crypto Funds Suffer $98.5M Outflows Amid Cooling Institutional Demand

US-listed crypto funds experienced significant outflows, totaling $98.5 million in a single day. This marks at least the second straight session of net negative flows, signaling a cooling in institutional appetite for cryptocurrencies after weeks of heavy inflows.

The simultaneous outflows from both Bitcoin and Ethereum ETFs suggest capital is exiting the crypto ETF space rather than rotating between assets. Historically, such outflow periods coincide with short-term price weakness as ETF issuers sell underlying assets to meet redemptions.