Global cryptocurrency exchange-traded products (ETPs) saw a sharp reversal last week, with investors pulling out roughly $1.17 billion from digital asset funds, according to the latest report from CoinShares. The downturn highlights persistent volatility in the crypto market following last month’s liquidity shock and renewed uncertainty over U.S. monetary policy.
CoinShares Head of Research James Butterfill said sentiment across crypto markets remains fragile.
“Negative sentiment pervaded the markets due to ongoing gyrations following the October 10 liquidity cascade and uncertainty over a potential December interest rate cut in the U.S.,” he noted.
Despite the outflows, trading activity stayed high, with ETP trading volumes reaching $43 billion for the week. There was a brief rebound in inflows midweek, but renewed selling pressure returned by Friday, cutting the recovery short.
U.S. Funds Lead the Decline
The majority of withdrawals came from U.S.-based funds, which saw $1.22 billion in outflows. In contrast, investors in Switzerland, Germany, and Brazil continued to buy into crypto products, bringing in $49.7 million, $41.3 million, and $12 million in inflows, respectively.
Bitcoin and Ethereum both slipped during the week, down 5.3% and 8.4%, before showing mild recovery over the weekend on optimism surrounding progress toward resolving the U.S. government shutdown.
Bitcoin and Ethereum Products Under Pressure
Bitcoin-based ETPs bore the brunt of investor withdrawals, losing $932 million last week. Short Bitcoin funds, which benefit from price declines, saw $11.8 million in inflows, marking the strongest two-week run since May 2025.
In the U.S., spot Bitcoin ETFs alone recorded $1.2 billion in outflows, led by BlackRock’s IBIT, which shed $581 million. Ethereum products also faced headwinds, with global outflows of $438 million—driven mainly by $507.7 million withdrawn from U.S.-based spot ETH ETFs, including BlackRock’s ETHA.
Altcoins Offer a Bright Spot
While major crypto assets struggled, altcoins stood out as a rare positive. Solana (SOL) ETPs attracted another $118 million in inflows, pushing their nine-week total to $2.1 billion, buoyed by strong interest in newly launched U.S. ETFs. HBAR and Hyperliquid ETPs also gained traction, drawing $26.8 million and $4.2 million, respectively.
A Market Searching for Stability
The latest data underscores the fragility of investor confidence in digital asset funds. As markets continue to digest recent volatility and policy uncertainty, regional inflows in Europe and Latin America hint that not all investors are retreating.
For now, the crypto market’s path forward depends on broader macroeconomic signals and whether the post-liquidity shakeout can give way to steadier ground in the weeks ahead.
