- The decline in institutional and individual interest affects Bitcoin, Ethereum, and Ripple.
Bitcoin's price continued to rise over the past week, exacerbated by the global market risk aversion following President Donald Trump's nomination of Kevin Warsh as Federal Reserve Chairman—Warsh has served as Fed Governor and economic advisor to the President.
The Federal Reserve halted its monetary easing cycle on Wednesday, keeping interest rates unchanged at a range of 3.50% to 3.75%. Fed Chair Jerome Powell took a hawkish stance during the post-meeting press conference. Furthermore, the lack of signals indicating future rate cuts led to decreased demand for high-risk assets like Bitcoin and altcoins.
Investors continued to withdraw funds from exchange-traded funds (ETFs), with outflows reaching approximately $510 million on Friday. Data from SoSoValue indicates that total outflows amounted to $1.49 billion last week, up from $1.33 billion the previous week. Total inflows stand at $55 billion, while the net assets under management are around $107 billion.
Bitcoin ETF Flows | Source: SoSoValue
The derivatives market continues to decline, with the open interest in Bitcoin futures contracts falling to $52.03 billion on Monday, compared to $54 billion the day before and $61 billion on Friday. Open interest reflects the nominal value of outstanding futures contracts; thus, the decrease in retail investor activity indicates a loss of confidence in Bitcoin's ability to maintain its upward trend. It also means investors are closing their positions rather than opening new ones, depriving Bitcoin of the momentum needed for recovery.
Open Interest in Bitcoin | Source: CoinGlass
Similarly, Ethereum faces a significant decline in interest from both institutions and individuals, as inflows from U.S.-listed spot ETFs increased to around $253 million on Friday, compared to $156 million the previous day. Total inflows amount to $11.97 billion, while net assets under management are approximately $15.86 billion.
Ethereum ETF Flows | Source: SoSoValue
Retail investor interest in the Ethereum network remains low, with open interest in futures contracts declining to $27.69 billion on Monday, from $29.67 billion the day before. The open trading volume reached $38 billion on Friday, confirming a sharp decrease in speculative appetite for risk.
Open Interest in Ethereum | Source: CoinGlass
As for XRP, spot ETF funds resumed capital inflows on Friday with about $17 million, after recording the largest single-day outflows since launch, totaling around $93 million on Thursday. Total inflows currently stand at $1.18 billion, with net assets under management at $1.19 billion.
ETF inflows serve as a market sentiment indicator, where large or steady outflows suggest that investors lack confidence in XRP amid increasing volatility.
XRP ETF Flows | Source: SoSoValue
Retail investor interest in XRP has noticeably declined, with open interest dropping to $2.81 billion on Monday, from $2.97 billion the previous day. The decrease in retail activity indicates a lack of confidence in this digital currency designed for cross-border money transfers to sustain its upward trend, prompting investors to sell.