- 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 saw their strongest inflows since May 2025.
- Solana, XRP, and Hedera posted inflows, bucking the trend as total crypto ETP assets fell to $207.5 billion.
Cryptocurrency investment products faced growing selling pressure last week, marking a second consecutive week of net outflows as investors reacted to broader market weakness and shifting macroeconomic sentiment.
According to a Monday report from CoinShares, crypto exchange-traded products (ETPs) recorded $1.17 billion in outflows for the week, a sharp rise of about 70% from the $360 million withdrawn the prior week.
The trend highlights increasing caution among digital-asset investors amid ongoing volatility and uncertainty surrounding U.S. monetary policy.
Negative sentiment deepens after flash crash
James Butterfill, head of research at CoinShares, attributed the continued selling to persistent negative sentiment across the crypto market following the flash crash on October 10.
He also pointed to investor uncertainty about whether the Federal Reserve will cut interest rates in December, adding another layer of doubt among market participants.
Despite the outflows, trading activity remained elevated.
CoinShares reported that ETP trading volumes stayed high at $43 billion for the week, indicating investors were still actively repositioning amid volatility.
There was a brief midweek recovery, with optimism building on Thursday as traders hoped progress in averting a U.S. government shutdown might stabilize risk appetite.
Those hopes faded quickly, however, and new outflows resumed on Friday, Butterfill said.
Bitcoin and Ether lead outflows
Bitcoin continued to shoulder the bulk of the selling pressure.
Bitcoin ETPs saw $932 million in outflows, only slightly below the $946 million pulled the previous week.
The world’s largest cryptocurrency has struggled to regain positive momentum since early October, reflecting broader investor caution.
Ether products also failed to hold onto gains.
After recording $57 million of inflows the prior week, Ether funds posted $438 million in outflows, signaling investors’ doubts about the asset’s near-term performance.
Even short Bitcoin ETPs, which benefit from price declines, registered $11.8 million of inflows, marking the strongest week for bearish Bitcoin products since May 2025.
Butterfill noted that new interest in short positions underscores deepening pessimism across the digital-asset market.
Solana, XRP show resilience
Amid the wider sell-off, a handful of altcoins managed to resist the downward trend.
Solana (SOL) stood out again, drawing $118 million in inflows over the week.
CoinShares said Solana ETPs have now amassed $2.1 billion in inflows over the past nine weeks, highlighting sustained institutional interest in the blockchain despite a weak overall market.
Other altcoins also showed resilience.
XRP recorded $28 million of inflows, Hedera (HBAR) attracted $27 million, and Hyperliquid (HYPE) added $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 over $254 billion in early October, underlining how quickly investor sentiment has shifted as macro and market headwinds continue to weigh on the digital-asset sector.