Bitcoin, Ethereum ETF Investments Flip Negative for 2026 as Crypto Funds Shed $1.7B

Group 1: Market Overview - Digital asset investment products experienced outflows totaling $1.7 billion for the second consecutive week, resulting in a net year-to-date outflow of approximately $1 billion globally [1] - The U.S. was the primary contributor to these outflows, accounting for $1.65 billion, while Canada and Sweden saw withdrawals of $37.3 million and $18.9 million, respectively [1] - Bitcoin products faced significant withdrawals of $1.32 billion, and Ethereum products lost $308 million, with altcoins like XRP and Solana also experiencing outflows [2] Group 2: Market Conditions - The total assets under management have decreased by $73 billion since the price highs in October 2025, amid a sharp market downturn [3] - Bitcoin is currently trading around $78,867, down 9.9% over the past week, and Ethereum is trading near $2,370, down more than 18% in the same period [3] Group 3: Federal Reserve Developments - The nomination of Kevin Warsh as the new Federal Reserve chair has raised concerns regarding the future of monetary policy, particularly in relation to cryptocurrency [4][5] - Warsh has expressed mixed views on cryptocurrency, previously labeling many projects as "fraudulent," but has recently adopted a more conciliatory stance towards Bitcoin [5] - Market analysts suggest that while Warsh may be perceived as hawkish, his underlying policy bias on interest rates remains dovish, with expectations for rate cuts later in 2026 showing little change [5][6]