Global crypto investment products experienced $812 million in net outflows last week, ending a two‑week streak of inflows, according to CoinShares data released Monday. The asset manager's Head of Research, James Butterfill, attributed the reversal to stronger‑than‑anticipated macroeconomic data affecting U.S. investor sentiment.
Expectations for two additional U.S. rate cuts this year diminished following revised GDP and durable goods figures. Total assets under management declined to $221 billion from the previous week’s record $241 billion, marking a significant shift in institutional positioning.
U.S.-based digital asset investment products led outflows with $1.04 billion in redemptions. Switzerland, Canada, and Germany bucked the trend with net inflows of $126.8 million, $58.6 million, and $35.5 million, respectively, suggesting negative sentiment remained isolated to American markets.
$BTC‑based funds dominated the exodus, shedding $719 million during the period. Butterfill noted that short‑Bitcoin investment product demand showed no corresponding increase, indicating the negative sentiment likely represents low‑conviction positioning that may prove temporary.
U.S. spot Bitcoin exchange‑traded funds alone recorded $897.6 million in outflows, with Fidelity's FBTC product leading losses at $737.8 million. Regional inflows from other markets partially offset the domestic withdrawal, demonstrating geographic divergence in institutional crypto appetite.
ETH products suffered parallel pressure, experiencing $409 million in exits. U.S. spot Ethereum ETFs specifically lost $795.8 million, reflecting continued institutional repositioning away from the second‑largest cryptocurrency by market capitalization.
Solana and XRP funds emerged as notable exceptions to the broader outflow trend. Solana products attracted $291 million in new capital, while XRP funds generated $93.1 million in net inflows, likely driven by anticipation surrounding upcoming U.S. ETF launch decisions.
Despite last week’s reversals, cumulative flows remain substantial, with month‑to‑date inflows reaching $4 billion and year‑to‑date totaling $39.6 billion. Butterfill suggested crypto funds are well‑positioned to maintain momentum and potentially match last year’s record $48.6 billion in annual inflows.
NovaDius Wealth Management president Nate Geraci characterized the upcoming two weeks as potentially “enormous” for U.S. spot crypto ETFs. The Securities and Exchange Commission faces deadlines on multiple altcoin ETF filings, including decisions on LTC, XRP, Solana, DOGE, ADA, and HBAR products, with discretion to approve any or all applications at any time.