Crypto Funds Lost $812M Last Week as U.S. Outflows Surged
After weeks of steady inflows, institutional demand for crypto investment products has stumbled.
CoinShares data shows that asset managers including BlackRock, Fidelity, Grayscale, and ProShares saw a collective $812 million pulled from their products last week – a sharp reversal tied to shifting expectations around U.S. monetary policy.
Stronger economic data, including upward revisions to GDP and durable goods, has led markets to scale back bets on additional Federal Reserve rate cuts this year. That macro backdrop, analysts say, put pressure on U.S.-based funds in particular, with the region posting more than $1 billion in redemptions. In contrast, products listed in Europe and Canada attracted fresh capital, with Switzerland alone bringing in over $120 million, highlighting how investor sentiment is diverging across regions.
Bitcoin products once again felt the biggest hit, losing more than $700 million in a week. But interestingly, there was no spike in demand for short-Bitcoin exposure, which CoinShares’ James Butterfill argued suggests last week’s pullback was more about profit-taking than a fundamental change in conviction. Fidelity’s FBTC spot ETF recorded the heaviest outflows, shedding nearly three-quarters of a billion dollars on its own.
Ethereum products also struggled, with nearly $800 million flowing out of U.S.-listed ETFs and $409 million lost globally. Together, BTC and ETH accounted for the vast majority of the redemptions.
Not every asset category was in decline, however. Solana and XRP-based funds bucked the trend, attracting $291 million and $93 million, respectively. Observers say those inflows are likely tied to speculation around forthcoming U.S. ETF launches, which could bring both tokens into the institutional spotlight.
Despite the setback, cumulative inflows for the year remain strong at almost $40 billion, keeping the industry on track to challenge last year’s record haul. For now, the story appears less about fading institutional interest and more about short-term jitters in response to shifting expectations for Fed policy.
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Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
