Digital asset investment products lost $1.17 billion last week, marking the second straight week of sharp outflows driven by US economic uncertainty and lingering October volatility.
Bitcoin and Ethereum were hit hardest, with outflows of $932 million and $438 million, respectively.
US Leads Global Outflows as Macro Fears Intensify
The US market saw $1.22 billion in outflows last week, according to CoinShares’ weekly fund flows report. This suggests negative sentiment in the largest crypto market, where investors faced uncertainty over a possible December interest rate cut and the threat of a government shutdown.
Federal Reserve Chair Jerome Powell’s recent hawkish comments amplified market concerns. His resistance to lowering rates prompted a broader shift away from risk assets, particularly in digital investment products. The market shifted focus from hopes of monetary easing to concerns about inflation and economic headwinds.
In contrast, European investors were more optimistic. Germany and Switzerland posted inflows totaling about $91 million, with $41.3 million from Germany and $49.7 million from Switzerland.
Crypto Outflows By Country. Source: CoinShares Report
This divergence highlights different risk appetites and regional sentiment, with European markets staying constructive despite global turbulence.
ETP trading volumes remained strong at $43 billion during the week. Activity jumped midweek on hopes that Congress might avert the government shutdown, briefly slowing outflows.
Yet, ongoing political stalemates renewed investor pessimism, pushing more withdrawals at week’s end.
Bitcoin and Ethereum Suffer, Short Positions Surge
Bitcoin products took the largest hit with $932 million in withdrawals. The leading cryptocurrency’s sensitivity to US policy shifts was evident, as investors adjusted their positions in response to Powell’s stance and the volatility that followed October’s liquidity cascade.
Ethereum also fell sharply, recording $438 million in outflows. Despite $57.6 million in inflows during the previous week, ongoing volatility suggests mixed sentiment among institutional investors about Ethereum’s short-term outlook.
Short Bitcoin ETPs attracted $11.8 million in new funds, the highest inflow since May 2025. This surge reflects growing belief that Bitcoin’s rally could face more headwinds if macroeconomic or regulatory risks increase.
Crypto Outflows by Asset. Source: CoinShares Report
Differences in product flows underline current market uncertainty. While some investors remain bullish on crypto’s future, others are preparing for further declines or corrections.
Solana and XRP Buck the Trend with Record Institutional Demand
Amid heavy outflows elsewhere, Solana stood out with $118 million in inflows last week, marking a nine-week tally of $2.1 billion. For 2025, Solana products have attracted $3.3 billion year-to-date, signaling rising institutional demand.
US Solana ETF launches added to this momentum. Bitwise’s BSOL and Grayscale’s GSOL both saw strong demand, with four consecutive days of net inflows totaling $200 million. The previous week, Solana saw $421 million in inflows, its second-highest on record.
Other altcoins also resisted the overall downturn. HBAR gained $26.8 million and Hyperliquid $4.2 million. XRP, along with Solana, attracted inflows—showing that selective altcoin strength is possible even as Bitcoin and Ethereum struggle.
The divide in flows highlights a market shaped by conflicting trends. US policy uncertainty and cautious outlooks weigh on Bitcoin and Ethereum. Yet Solana and a few altcoins demonstrate that investors are focusing on fundamentals, use cases, and new products.
Washington’s gridlock and the Federal Reserve’s stance on rate cuts continue to drive risk sentiment. If the economic picture worsens or regulations tighten, outflows could grow. In contrast, a government resolution or dovish signals may revive investor appetite.
