Cryptocurrency investment products saw significant outflows of $1.07 billion last week, ending six consecutive weeks of inflows. The outflows, driven by investor risk aversion amid inflation and geopolitical concerns, were led by Bitcoin with $982 million withdrawn. Ethereum products also saw substantial outflows, while XRP and Solana funds attracted new capital.
Digital asset exchange-traded products recorded $1.07 billion in net outflows last week. This marked the third-largest weekly outflow this year and halted a six-week streak of inflows.
Bitcoin investment products accounted for the bulk of the withdrawals, with $982 million in outflows. Ether products lost $249 million, their largest outflow since late January.
Altcoin funds bucked the broader negative trend. XRP investment products drew in $67.5 million, while Solana funds added inflows of $55.1 million.
Most of the outflows originated in the United States, where investors pulled a net $1.14 billion from funds. Several European markets, including Switzerland, Germany, and the Netherlands, posted modest inflows.
The pullback coincided with a broader retreat in risk assets, as investors focused on disruptions to global oil supplies. These disruptions have pushed energy prices higher and contributed to a renewed rise in U.S. inflation.
CoinShares head of research James Butterfill said select altcoins benefited from improving U.S. regulatory sentiment. This followed progress on the CLARITY Act, which advanced out of the Senate Banking Committee with bipartisan support.
Industry advocates say the bill could reduce regulatory uncertainty and provide a more predictable legal environment. Crypto Council for Innovation CEO Ji Hun Kim stated “the momentum and progress are both strong” as the legislation moves through Congress.
However, several Senate Democrats have pushed for stronger ethics provisions concerning officials’ financial ties to crypto. Republican Senator Thom Tillis said “more work remains in the weeks ahead to make this legislation even better.”
