- Crypto funds recorded outflows totaling $1.17 billion, widening losses amid weak sentiment and uncertainty over potential interest 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 and bucked the trend as crypto ETP assets fell to $207.5 billion.
Cryptocurrency investment products faced increasing selling pressure last week, marking a second consecutive week of net outflows as investors reacted to broad market weakness and shifting macroeconomic expectations.
According to a CoinShares report published Monday, crypto exchange-traded products (ETPs) recorded $1.17 billion of outflows for the week — a roughly 70% increase from the $360 million withdrawn the prior week.
The trend highlights growing investor caution toward digital assets amid continued volatility and uncertainty about U.S. monetary policy.
Negative sentiment deepens after flash crash
James Butterfill, Head of Research at CoinShares, attributed the ongoing sell-off to persistent negative sentiment following the flash crash on October 10.
He also pointed to investor uncertainty over whether the U.S. Federal Reserve will cut interest rates in December, which has contributed to further hesitation among market participants.
Despite the outflows, trading activity remained elevated.
CoinShares reported that ETP trading volume held high at $43 billion for the week, indicating that investors continued to actively reposition amid the volatility.
Midweek brought a brief recovery, with optimism building on Thursday as traders hoped that progress toward averting a U.S. government shutdown could stabilize risk appetite.
Those hopes faded quickly, however, and outflows resumed by Friday, Butterfill noted.
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 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.
After $57 million of inflows the prior week, Ether funds recorded $438 million of outflows, suggesting investors remain unconvinced by the asset’s near-term performance.
Even short-Bitcoin ETPs, which profit from a decline in Bitcoin’s price, attracted $11.8 million of inflows — the strongest week for bearish Bitcoin products since May 2025.
Butterfill said renewed interest in short positions underscores growing pessimism across digital-asset markets.
Solana and XRP show resilience
Amid the broader downturn, a handful of altcoins resisted the selling pressure.
Solana (SOL) stood out again, drawing $118 million in inflows during the week.
CoinShares noted that Solana ETPs have attracted $2.1 billion of inflows over the past nine weeks, underscoring sustained institutional interest in the blockchain network despite the wider market weakness.
Other altcoins also displayed resilience.
XRP saw $28 million of inflows, Hedera (HBAR) attracted $27 million, and Hyperliquid (HYPE) added $4.2 million.
Overall, assets under management (AUM) in crypto ETPs fell to $207.5 billion after two consecutive weeks of outflows totaling $1.5 billion, the lowest level since mid-July.
AUM had peaked at over $254 billion in early October, highlighting how quickly investor sentiment has shifted as macroeconomic and market headwinds continue to weigh on the digital-asset sector.