After a strong 15-week run of continuous inflows, crypto investment funds finally hit a pause, with $223 million in outflows recorded last week, according to CoinShares data. The turnaround came despite a solid start to the week, where funds saw $883 million worth of inflows in the first few days. But that momentum didn’t last.
The mood flipped mid-week after the U.S. Fed hinted at staying hawkish in its latest meeting. On top of that, stronger-than-expected economic data shook things up. Markets turned cautious fast, and investors started booking profits. By Friday, things really escalated, and over $1 billion was pulled out of crypto funds in just one day.
James Butterfill, Head of Research at CoinShares, explained that while weaker U.S. payroll data on Friday could’ve hinted at a dovish turn for the Fed, the overall sentiment was already tilted toward caution.
He noted, “Given we have seen $12.2 billion net inflows over the last 30 days, representing 50% of inflows for the year so far, it is perhaps understandable to see what we believe to be minor profit taking.”
Bitcoin Sees the Biggest Hit, Ethereum Still Strong
Bitcoin investment products were hit hardest, with $404 million in outflows, mostly from U.S. spot Bitcoin ETFs, which alone lost $642.9 million. Even with that dip, Bitcoin has still pulled in $20 billion this year, which just shows how much it reacts every time interest rate talks come up.
Meanwhile, Ethereum kept its streak going strong and didn’t slow down. ETH-based funds saw $133 million in net inflows, marking their 15th straight week of gains, the longest since mid-2021. Interestingly, even after a rough Friday (with $152.3 million in outflows), U.S. spot Ethereum ETFs still led the week with $154.3 million in total inflows.
Altcoins also saw selective interest. XRP brought in $31.2 million, while Solana and Sei followed with $8.8 million and $5.8 million, respectively.
Region-Wise: U.S. Pulls Out, Hong Kong and Switzerland Step In
The U.S. led the withdrawals with $383 million in outflows, followed by Germany with $35.5 million and Sweden with $33.3 million. Meanwhile, some regions took a more bullish stance; Hong Kong recorded $170.4 million in inflows, and Switzerland added another $52.4 million.
While the week ended in red, the bigger picture still leans positive. A minor pullback after weeks of inflows and rising prices isn’t surprising. What this does show, however, is how tightly crypto remains tied to macroeconomic signals, and just how quickly sentiment can flip.
Also Read: Spot Bitcoin ETFs See $812M in Outflow as Market Turns Bearish
