Crypto Funds See $1.17B Weekly Outflows, CoinShares Reports

Crypto funds faced another tough week as outflows reached $1.17 billion, according to CoinShares. It marks the second straight week of withdrawals. Which driven by post liquidity turmoil and doubts over possible U.S. interest rate cuts. Despite the broader sell off, Solana and a few altcoins managed to attract inflows. They are defying the negative market sentiment.

BTC and ETH Lead Massive Outflows

Bitcoin and Ethereum took the biggest hit during the week. Bitcoin funds recorded $932 million in outflows. While Ethereum saw $438 million leave. Investors appeared to shift toward defensive positions. Amid the ongoing market volatility. That followed the October liquidity cascade. Interestingly, short Bitcoin products saw inflows worth $11.8 million. This marks one of the highest levels since May 2025.

Chart: Weekly Crypto Asset Flows (US$m) by CoinShares

The broader sentiment was largely cautious. Many traders expect the Federal Reserve’s next move on interest rates to shape the crypto short term direction. Currently, uncertainty continues to pressure crypto funds, especially in the U.S.

U.S. Outflows Dominate as Europe Shows Strength

CoinShares’ data highlights a sharp regional divide. U.S. investors led the wave of selling, with outflows totaling $1.22 billion. In contrast, Europe bucked the trend. Germany and Switzerland recorded inflows of $41.3 million and $49.7 million, respectively. It signals that institutional appetite in the region remains steady despite global uncertainty.

Trading activity also stayed high. With total ETP trading volumes hitting $43 billion. Midweek optimism briefly lifted flows. As hopes rose for progress in resolving the U.S. government shutdown. However, that optimism faded quickly. The outflows resumed by Friday as sentiment turned sour again.

Solana and Altcoins Defy the Trend

While Bitcoin and Ethereum struggled. Solana once again proved its resilience. It attracted $118 million in inflows last week. It added to a nine-week streak totaling $2.1 billion. Other altcoins such as Hedera and Hyperliquid, also saw modest gains of $26.8 million and $4.2 million, respectively. This divergence shows a broader shift within crypto investment behavior. Institutional investors seem to be rotating toward high performance altcoins. While scaling back exposure to BTC and ETH amid macroeconomic uncertainty.

Market Outlook Remains Cautious

The latest outflows highlight just how closely crypto markets react to global financial shifts. Investors are waiting for clearer cues. From the Federal Reserve on where interest rates are headed. Until that happens, crypto funds may keep experiencing choppy conditions.

Still, steady inflows into Solana and a few select altcoins tell a different story. They show growing confidence in spreading investments beyond the big names. While Bitcoin and Ethereum continue to lead the market. The strength of altcoins suggests a gradual move toward a more balanced setup. CoinShares’ report ends on a cautious note, but not without optimism. For now, the market remains alert, watchful, but quietly hopeful about what comes next.