US Bitcoin ETFs Lost $946 Million After Hawkish Tone From Fed

US Bitcoin exchange-traded funds bore the brunt of institutional outflows last week, accounting for $946 million in withdrawals, according to a new report from digital asset manager CoinShares.

iShares Bitcoin Trust (IBIT) paid out about $400 million last week, the most among the 11 spot BTC funds currently trading. But total net flows for all funds that track digital assets were a less dramatic $360 million.

“Digital asset investment products saw total inflows of $360 million last week despite the recent US interest rate cut, as investors interpreted Fed Chairman Jerome Powell’s comments on the likelihood of another cut in December as ‘not a foregone conclusion,'” CoinShares Research Director James Butterfill said in the report. “This hawkish tone, combined with a notable absence of key US economic data releases, appears to have left investors in a state of limbo.”

BTC fund losses were offset by ETF gains in other regions. Funds from issuers in Germany and Switzerland had a net outflow of more than $30 million last week. Broadcasters from Canada and Australia generated $8.5 million and $7.2 million in flows.

The general crypto fund category was supported by a higher-than-usual flow in Solana’s exchange-traded products. Investors poured $421 million into SOL-based ETFs last week, driven by hype for new US-based funds that began trading in late October.

Last week’s debuts include the Bitwise Solana ETF, which trades on the Nasdaq under the BSOL ticker. The bottom has already been reached $105 million in assets under management later launched a week ago. A competitor, the Rex-Osprey Solana Staking ETF, which also trades on the Nasdaq under the SSK ticker, caught 12 trading days to reach $100 million of AUM.

The scarcity of US economic data is due to the ongoing shutdown of the US government, which has lasted more than 33 days. As of Wednesday this week, the shutdown will be the longest in US history. Users on Myriad, a prediction market owned by Decrypt the parent company Dastan, think there is a 97% chance lawmakers will not end the shutdown in the next two days.

Crypto markets fell on Monday morning, forcing the liquidation of more than $1 billion worth of crypto contracts. Bitcoin and Ethereum were almost tied, accounting for $312 million and $303 million of closed contracts, respectively.

At the time of writing, Bitcoin was trading for $107,463 after falling 2.5% in the previous day. And Ethereum was trading for $3,657.77, about 5.1% lower than it was this time on Sunday, according to crypto price aggregator CoinGecko.