Cryptocurrency markets continued to experience widespread sell-offs last week, marking a second consecutive week of outflows from crypto investment products. Despite a sustained trading volume, investor sentiment remains cautious amid ongoing market volatility and macroeconomic uncertainties. While major cryptocurrencies like Bitcoin and Ethereum faced significant withdrawals, some altcoins demonstrated resilience, challenging the overall downward trend.
- Crypto exchange-traded products (ETPs) saw $1.17 billion in outflows, up 70% from the previous week.
- Bitcoin ETPs led the outflows with $932 million, though short Bitcoin products experienced some inflows.
- Ethereum funds recorded $438 million in outflows, unable to resist the negative momentum.
- Selective altcoins like Solana and XRP bucked the trend with notable inflows, signaling investor interest in certain projects.
- Assets under management in crypto ETPs declined to $207.5 billion, the lowest since mid-July.
Crypto investment products are under pressure as market sentiment remains bleak, driven by the fallout from the October 10 flash crash and a wave of macroeconomic concerns. CoinShares reported that last weekโs outflows from exchange-traded products, which track Bitcoin, Ethereum, and other digital assets, amounted to $1.17 billion โ a significant jump from the $360 million outflows recorded the prior week. Despite elevated trading volumes, reaching $43 billion, market optimism was short-lived, with any brief recovery on Thursday fading quickly as fears about a potential US interest rate cut in December resurfaced.
Bitcoin outflows persist, Ethereum struggles
Bitcoin-focused ETPs experienced another heavy week of withdrawals, totaling $932 million โ slightly less than the $946 million outflow the week before. Despite this persistent trend, short Bitcoin ETPs saw inflows of $11.8 million, marking the strongest weekly inflows since May 2025, according to CoinShares. Ethereum funds, on the other hand, were unable to escape the negative momentum, suffering $438 million in outflows after an inflow of $57 million the previous week.
While Bitcoin and Ethereum saw significant outflows, some altcoins defied the trend. Solana (SOL) led the charge with $118 million in inflows last week, bringing its total inflows over nine weeks to approximately $2.1 billion. XRP, Hedera (HBAR), and Hyperliquid (HYPE) also registered positive flows of $28 million, $27 million, and $4.2 million, respectively, highlighting investor interest in certain alternative blockchain assets during turbulent times.
Overall, assets under management across crypto ETPs declined to $207.5 billion, hitting the lowest level since mid-July. This decline follows two weeks of outflows totalling around $1.5 billion, with assets peaking over $254 billion in early October. Despite the sell-offs, some sectors within the crypto market are showing signs of resilience, hinting at potential opportunities for investors looking to diversify or hedge within the ever-evolving landscape of blockchain and digital assets.
