- Crypto funds recorded $1.17B in outflows, widening losses amid weak sentiment and uncertainty over rate cuts.
- Bitcoin and Ether led the declines, while Bitcoin short ETPs saw their strongest inflows since May 2025.
- Solana, XRP and Hedera bucked the trend with inflows as total crypto ETP assets fell to $207.5B.
Cryptocurrency investment products faced renewed selling pressure last week, marking a second consecutive week of capital outflows as investors continued to react to broad market weakness and shifting macroeconomic sentiment.
According to a Monday report from CoinShares, crypto exchange-traded products (ETPs) recorded $1.17 billion in outflows this week, a roughly 70% jump from $360 million the prior week.
The trend highlights rising caution among digital-asset investors amid continued volatility and uncertainty surrounding U.S. monetary policy.
Negative sentiment deepens after flash crash
James Butterfill, Head of Research at CoinShares, said the sustained downturn reflects persistent negative sentiment across the crypto market following the October 10 flash crash.
He also pointed to investor uncertainty over whether the Federal Reserve will cut rates in December, which has reinforced hesitancy among market participants.
Despite outflows, trading activity remained elevated.
CoinShares reported that ETP trading volume stayed high at $43 billion this week, indicating investors were still actively reallocating amid volatility.
Midweek brought a brief recovery, with optimism rising on Thursday as traders hoped progress to avert a U.S. government shutdown might stabilize risk sentiment.
However, that hope quickly faded, and new outflows returned by Friday, Butterfill noted.
Bitcoin and Ether lead the outflows
Bitcoin continued to bear the brunt of selling pressure.
Bitcoin ETPs recorded $932 million in outflows, slightly below the $946 million recorded the previous week.
The largest cryptocurrency has struggled to regain positive momentum since early October, reflecting broad investor caution.
Ether (ETH) products also failed to hold earlier gains and reversed course.
After $57 million of inflows the prior week, Ether funds saw $438 million in outflows, signaling that investors still lack confidence in the asset’s near-term performance.
Even Bitcoin short ETPs—designed to profit from price declines—registered $11.8 million of inflows, marking the strongest week for bearish Bitcoin products since May 2025.
Butterfill said renewed interest in short positions underscores growing pessimism across the digital-asset market.
Solana and XRP show resilience
Amid the broader downturn, a handful of altcoins managed to buck the sell-off.
Solana (SOL) stood out again, attracting $118 million of inflows over the week.
CoinShares noted Solana ETPs have attracted $2.1 billion of inflows over the past nine weeks, highlighting sustained institutional interest in the blockchain network despite the wider market slump.
Other altcoins also showed resilience.
XRP recorded $28 million of inflows, Hedera (HBAR) added $27 million, and Hyperliquid (HYPE) picked up $4.2 million.
Overall, after two consecutive weeks of outflows totaling $1.5 billion, total assets under management (AUM) in crypto ETPs fell to $207.5 billion, the lowest level since mid-July.
AUM peaked at more than $254 billion in early October, underscoring how quickly investor sentiment can shift as macro and market headwinds weigh on the digital-asset sector.