Last week, US Bitcoin and Ethereum ETFs saw a sharp reversal, losing over $1.7 billion amid price volatility. Bitcoin ETFs had $903 million in net withdrawals due to growing macroeconomic uncertainty. Ethereum ETFs also faced heavy losses, with $796 million in outflows, signaling a broader cooling in crypto ETF demand.

Institutional investors are shifting to a defensive stance amidst inflation concerns and slowing global growth, leading to reduced appetite for volatile assets like digital assets. CryptoQuant data shows Bitcoin treasury firms are under pressure, while attention shifts to ETFs tied to alternative tokens, drawing capital away from Bitcoin and Ethereum funds.

As investors reevaluate their strategies in light of macro headwinds, there is a growing interest in diversification within crypto assets. Despite a cooling risk sentiment, inflows are redirected towards ETFs tied to alternative tokens, indicating a more selective and opportunistic approach to investing in the crypto market.

Read more at Yahoo Finance: Bitcoin and Ethereum ETFs Lose $1.7 Billion as Institutions Retreat