Bitcoin and Ethereum ETFs saw a global decline of over $1.1 billion

Ethereum funds saw a decline of over $1.17 billion last week.

BlackRock's iShares Bitcoin and Ethereum funds saw $876 million in outflows last week, more than any other issuer. The Fidelity Wise Original Bitcoin Fund saw $438 million in outflows.

These outflows from BTC and ETH funds were due to "negative market sentiment due to ongoing turmoil in crypto markets," the sudden drop on October 10, and growing uncertainty about a Federal Open Markets Committee interest rate cut in December.

According to the CME FedWatch tool, as of Monday morning, futures trading indicated a 64.6% chance that the FOMC would cut interest rates by 25 basis points at its December meeting. A month ago, traders believed there was a 91.7% chance of another rate cut.

Federal Reserve Chairman Jerome Powell cautioned last month that a further rate cut in December was not a foregone conclusion and acknowledged voices calling for the Fed to "wait at least one cycle" before further rate cuts.

This is a bearish signal for crypto traders because historically, rate cuts by the Federal Reserve have led to capital inflows into riskier assets like equities and digital assets.

The CoinShares report also noted that there is still a significant difference in ETP share activity on US and European exchanges. US exchanges saw $1.2 billion in selling, a large portion of which reflected negative sentiment. However, total investment flows into Germany and Switzerland remained stable at $41.3 million and $49.7 million, respectively.

James Butterfill, head of research at CoinShares, wrote, "ETF trading volume reached a record high of $43 billion this week. A slight increase in intraday investments was seen on Thursday as hopes grew that progress was being made toward a resolution to the US government shutdown. However, this did not last long, and as these hopes faded on Friday, fresh outflows began."

Meanwhile, investment in Solana and other altcoin funds remains consistently positive.

Butterfill added, "Altcoins remain bullish, with Solana receiving $118 million in investments last week and $2.1 billion in investments over the past nine weeks." "HBAR ($26.8 million) and Hyperliquid ($420 million) also saw other notable investments."

Demand for the Bitwise Solana ETF remains stable as Bitcoin and Ethereum funds sell their assets.

The Bitwise Solana ETF has seen steady demand since its launch on October 28. Canary Capital launched its HBAR ETF on October 27, which trades on the Nasdaq under the HBR ticker and has attracted approximately $69 million worth of assets to date.

And while there is currently no spot ETF that provides exposure to the hyperliquid Layer 1 blockchain's native token, Hype (HYPE), a 21Shares exchange-traded product has been trading on the SIX Swiss Exchange since August.