- Cryptocurrency funds saw outflows of $1.17 billion, extending losses amid weak sentiment and uncertainty over interest-rate cuts.
- Bitcoin and Ether led the declines, while short Bitcoin ETPs recorded their strongest inflows since May 2025.
- Solana, XRP and Hedera recorded inflows, bucking the trend as crypto ETP assets fell to $207.5 billion.
Cryptocurrency investment products faced mounting selling pressure last week, marking a second consecutive week of net outflows as investors continued to react to broader market weakness and shifting macroeconomic sentiment.
According to a CoinShares report published Monday, exchange-traded products (ETPs) in the crypto sector saw outflows of $1.17 billion for the week — a sharp increase of roughly 70% compared with $360 million withdrawn the prior week.
The trend highlights growing investor caution toward digital assets 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 persistent negative mood in crypto markets to the October 10 flash crash.
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 weekly ETP trading volume stayed high at $43 billion, indicating that investors continued to actively reposition amid volatility.
A brief midweek rebound and growing optimism on Thursday, driven by hopes that progress to avert a U.S. government shutdown might stabilize risk appetite, provided a temporary lift.
However, those hopes faded quickly and outflows resumed by Friday, Butterfill noted.
Bitcoin and Ether lead outflows
Bitcoin continued to shoulder much of the selling pressure.
Bitcoin ETPs recorded outflows of $932 million, only slightly lower than the $946 million pulled the prior week.
The largest cryptocurrency has struggled since early October to regain positive momentum, reflecting broader investor caution.
Ether products also failed to hold onto prior gains.
After $57 million of inflows the previous week, Ether funds posted $438 million of outflows, signaling that investors remain uncertain about the short-term outlook for the asset.
Even short Bitcoin ETPs, which profit from declines in Bitcoin’s price, saw inflows of $11.8 million — their strongest week for bearish Bitcoin products since May 2025.
Butterfill observed that renewed interest in short positions underscores deepening pessimism across digital-asset markets.
Solana, XRP show resilience
Amid the broader slowdown, a handful of altcoins managed to buck the selling trend.
Solana (SOL) stood out again, attracting $118 million in inflows over the week.
CoinShares noted Solana ETPs have accumulated $2.1 billion in inflows over the past nine weeks, highlighting sustained institutional interest in the blockchain despite overall market weakness.
Other altcoins also showed resilience.
XRP recorded $28 million of inflows, Hedera (HBAR) drew $27 million, and Hyperliquid (HYPE) added $4.2 million.
Overall, following 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 had peaked above $254 billion in early October, underscoring how quickly investor sentiment shifted as adverse macroeconomic and market forces continued to weigh on the digital-asset sector.