Ethereum Faces $169 Million in Outflows As Traders Maintain Leverage Betting
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Ethereum Faces $169 Million in Outflows As Traders Maintain Leverage Betting

Despite experiencing significant outflows, traders continue to show interest in leveraged Ethereum positions as inflows into digital asset products surge.

Ethereum-based investment products faced their first notable outflow in five weeks, totaling $169 million, amid ongoing withdrawals. This occurred despite strong demand for 2x leveraged Ethereum ETPs, which suggests continued interest in high-risk trading strategies.

In contrast, the overall digital asset market saw an influx of $921 million after several weeks of volatility. A recent lighter-than-expected CPI report has reignited hopes for upcoming rate cuts this year. Furthermore, Bitcoin’s investment products saw substantial inflows of $931 million, bringing total inflows since the Federal Reserve’s initial rate cuts to $9.4 billion. Year-to-date inflows now total $30.2 billion but still lag behind last year’s $41.6 billion.

As excitement over ETFs for Solana and XRP diminishes, regional inflows led by the US, amounting to $843 million, indicate a robust domestic market. However, Switzerland witnessed $359 million in outflows linked to technical asset transfers.

With the upcoming Trump-Xi meeting on US-China trade dynamics, investor confidence could influence market movements, bringing momentum back to Bitcoin and other assets, particularly as the Federal Reserve evaluates its quantitative tightening approach.

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