- Crypto funds recorded outflows of $1.17 billion, extending losses amid weak sentiment and uncertainty over rate cuts.
- Bitcoin and Ether led the declines, while short Bitcoin ETPs posted their strongest inflows since May 2025.
- Solana, XRP and Hedera saw inflows, bucking the trend as crypto asset ETP assets fell to $207.5 billion.
Last week, investment products for cryptocurrencies faced increasing selling pressure, marking a second consecutive week of capital outflows as investors reacted to overall market weakness and shifting macroeconomic sentiment.
According to CoinShares’ Monday report, cryptocurrency exchange-traded products (ETPs) recorded net outflows of $1.17 billion for the week, a sharp increase of roughly 70% from the $360 million withdrawn the previous week.
This trend highlights growing caution among digital-asset investors amid ongoing volatility and uncertainty around U.S. monetary policy.
Negative sentiment deepens after sudden crash
James Butterfill, head of research at CoinShares, attributed the sustained sell-off to entrenched negative sentiment across crypto markets following the sudden crash on October 10.
He also pointed to investor uncertainty over whether the Federal Reserve will cut interest rates in December, adding another layer of hesitation among market participants.
Despite the outflows, trading activity remained elevated.
CoinShares reported that ETP trading volumes for the week held steady at $43 billion, indicating that investors continued to actively reshuffle positions amid volatility.
Midweek saw a brief recovery, and optimism grew on Thursday as traders hoped that progress toward averting a U.S. government shutdown might stabilize risk sentiment.
However, those hopes quickly faded and outflows resumed by Friday, Butterfill noted.
Bitcoin and Ether lead outflows
Bitcoin continued to bear the brunt of selling pressure.
Bitcoin ETPs suffered outflows of $932 million, only slightly below the $946 million recorded the previous week.
The world’s largest cryptocurrency has struggled to regain upward momentum since early October, reflecting broader investor caution.
Ether products also failed to hold gains, wiping out earlier inflows.
After recording a $57 million inflow the prior week, Ether funds posted $438 million in outflows, signalling that investors remain uncertain about the asset’s near-term prospects.
Even short Bitcoin ETPs, which profit from falling Bitcoin prices, saw inflows of $11.8 million — the strongest week for bearish Bitcoin products since May 2025.
Butterfill said renewed interest in short positions underscores the deepening pessimism across digital-asset markets.
Solana, XRP show resilience
Against the broader downturn, a handful of altcoins managed to buck the selling trend.
Solana (SOL) stood out again, attracting $118 million in inflows for the week.
CoinShares data show Solana ETPs have collected $2.1 billion in inflows over the past nine weeks, highlighting sustained institutional interest in the blockchain network despite broader market weakness.
Other altcoins also demonstrated resilience.
XRP saw $28 million in inflows, Hedera (HBAR) $27 million, and Hyperliquid (HYPE) $4.2 million.
Overall, after two consecutive weeks of outflows totalling $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 over $254 billion in early October, underscoring how quickly investor sentiment shifted as macroeconomic and market headwinds continued to pressure the digital-asset sector.