Crypto investment products saw their first weekly outflows in five weeks last week, with $414 million exiting the market as investors grew cautious over rising inflation risks and escalating tensions in the Middle East.
The pullback came as expectations for the June Federal Open Market Committee (FOMC) meeting in the US shifted from potential rate cuts to rate hikes, signaling a tougher macro backdrop for risk assets, CoinShares reported Monday.
Total assets under management fell to $129 billion, returning to levels last seen in early February and “broadly comparable to April 2025, during the initial phase of Trump’s tariffs,” CoinShares head of research James Butterfill said.
Weekly asset flows. Source: CoinShares
The reversal in flows suggests a shift toward risk-off sentiment, with macro concerns driving investor behavior and weighing on demand for digital assets.
Related: Morgan Stanley files amended S-1 for MSBT Bitcoin ETF
Ether leads outflows
Ether (ETH) led the declines among major assets, with $222 million in outflows, pushing its year-to-date (YTD) flows to a net loss of $273 million, the weakest among tracked assets.
Bitcoin (BTC) also recorded $194 million in outflows during the week but remains in positive territory for the year, with $964 million in net inflows. Short-Bitcoin products saw an additional $4 million in inflows, suggesting some investors are positioning for further downside.
Crypto product flows by assets. Source: CoinShares
Solana (SOL) followed with $12.3 million in outflows, while XRP (XRP) stood out as one of the few assets to attract fresh capital, posting $15.8 million in inflows.
Related: Morgan Stanley sets 0.14% Bitcoin ETF fee, lowest in market if approved
Spot Bitcoin, Ether ETFs see weekly outflows
Signs of risk-off sentiment are also emerging in crypto exchange-traded funds. Last week, spot Bitcoin ETFs snapped a four-week inflow streak, posting $296 million in net outflows after more than $2.2 billion in inflows earlier in the month.
Spot Ether ETFs also extended their losses, recording $206.6 million in outflows for a second straight week.
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