Digital asset investment products recorded $360 million in outflows last week, according to the latest CoinShares report, as investors reacted to Federal Reserve Chair Jerome Powell’s hawkish tone despite the recent U.S. rate cut.
Bitcoin ETFs Bear the Brunt
Bitcoin investment products suffered the most severe losses, with $946 million in weekly outflows, underscoring the asset’s sensitivity to monetary policy. Analysts attributed the move to Powell’s remarks that another rate cut in December was “not a foregone conclusion,” which dampened risk sentiment and fueled a stronger U.S. dollar.
Despite the interest rate adjustment, the market interpreted Powell’s comments as signaling a longer period of restrictive policy, a development that weighed heavily on Bitcoin’s price performance.
Regional Breakdown
The United States led global outflows, with investors withdrawing $439 million, accounting for the majority of the week’s losses. Modest inflows from Germany ($32 million) and Switzerland ($30.8 million) offered partial relief but were insufficient to offset U.S. weakness.
Other regions, including Australia ($7.2 million) and Canada ($8.5 million), saw small net inflows, while Swedenregistered $11 million in outflows amid declining investor confidence.
Altcoins Show Mixed Performance
While Bitcoin struggled, several altcoins saw robust inflows.
- Solana (SOL) attracted $421 million, the second-largest weekly inflow on record, largely driven by strong demand for newly launched U.S. Solana ETFs.
- Ethereum (ETH) followed with $57.6 million in inflows, extending its year-to-date total to $14.3 billion, though daily flows showed mixed investor sentiment.
- XRP posted $43.2 million in inflows, reflecting renewed institutional confidence following its integration into several tokenization initiatives. Other assets, such as Sui, Litecoin, and Chainlink, posted smaller inflows ranging between $0.5–$9.4 million, signaling continued diversification among institutional investors.
ETF Provider Trends
Outflows were most concentrated among major U.S. fund issuers:
- iShares ETFs led with $390 million in redemptions,
- Fidelity Wise Origin Bitcoin Fund lost $156 million, and
- Grayscale saw $39 million in withdrawals.
Meanwhile, 21Shares and ProShares reported moderate inflows, helping offset some of the weekly declines.
Market Outlook
Despite the week’s negative flows, total year-to-date inflows remain near $49 billion, highlighting the ongoing institutional engagement with crypto markets. However, analysts caution that sentiment may stay fragile until investors gain more clarity on the Fed’s next policy steps.
Solana’s record-breaking performance and Ethereum’s steady inflows suggest selective optimism remains, but for now, Bitcoin’s macro sensitivity continues to dominate crypto market direction.