Crypto Funds Post $414M Weekly Outflows on Inflation Fears

TLDR

• Crypto investment products recorded $414 million in outflows last week, ending a five-week inflow streak.
• Total assets under management fell to $129 billion, returning to levels seen in early February.
• Ether led the declines with $222 million dollars in outflows and a year-to-date net loss of $273 million dollars.
• Bitcoin products saw $194 million in weekly outflows but still hold $964 million in net inflows this year.
• Spot Bitcoin ETFs posted $296 million in net outflows, breaking a four-week inflow streak.

Crypto investment products posted $414 million in weekly outflows, ending a five-week inflow streak. Investors reacted to rising inflation risks and escalating tensions involving Iran. CoinShares reported the shift on Monday as macro expectations turned tighter.

Crypto Funds Reverse Course as Macro Outlook Tightens

Crypto funds recorded $414 million in outflows last week, according to CoinShares data. The move ended a five-week inflow run that had supported digital asset prices. Total assets under management fell to $129 billion, returning to early February levels.

James Butterfill, head of research at CoinShares, addressed the change in flows. He said assets now sit “broadly comparable to April 2025, during the initial phase of Trump’s tariffs.” The report linked the reversal to shifting expectations for the June Federal Open Market Committee meeting.

Markets had priced potential rate cuts earlier this quarter, yet traders now expect possible rate hikes. That shift followed stronger inflation signals and rising geopolitical tensions in the Middle East. As a result, fund flows reflected a defensive stance across digital asset products.

Bitcoin products posted $194 million in weekly outflows during the period. However, Bitcoin still holds $964 million in net inflows for the year. Short-Bitcoin products attracted $4 million, indicating positioning for potential downside.

Spot Bitcoin exchange-traded funds also reversed direction during the week. They posted $296 million in net outflows after more than $2.2 billion in inflows earlier this month. The data ended a four-week inflow streak for spot Bitcoin ETFs.

Ether Leads Declines while XRP Attracts Fresh Capital

Ether products led weekly losses among major digital assets. They recorded $222 million in outflows, pushing year-to-date flows to a net loss of $273 million. That performance ranks as the weakest among tracked assets this year.

Spot Ether ETFs extended their losing trend for a second consecutive week. They posted $206.6 million in outflows over the latest reporting period. The withdrawals followed similar redemptions during the previous week.

Solana investment products also faced selling pressure during the week. They reported $12.3 million in outflows as flows weakened across alternative assets. The data reflected broad reductions across several crypto-linked products.

In contrast, XRP products drew new capital during the same period. They posted $15.8 million in weekly inflows while most major assets declined. The inflows positioned XRP among the few digital assets to record gains in fund allocations.

CoinShares published the full breakdown of flows on Monday. The report detailed movements across Bitcoin, Ether, Solana, and XRP products. It confirmed that last week marked the first net outflow for crypto investment products in five weeks.

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