Crypto investment products recorded their first weekly outflows in five weeks, with $414 million exiting the market. The shift was attributed to investor caution over inflation risks and geopolitical tensions, as expectations for U.S. interest rates moved toward hikes. Ether led the outflows, while Bitcoin and Solana also saw significant withdrawals.
Crypto investment products saw their first weekly outflows in five weeks last week, with $414 million exiting the market. 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 meeting shifted from potential rate cuts to hikes. This signals a tougher macro backdrop for risk assets, as reported by CoinShares head of research James Butterfill.
Total assets under management fell to $129 billion, returning to levels last seen in early February. Butterfill noted these levels were “broadly comparable to April 2025, during the initial phase of Trump’s tariffs.”
Ether led the declines among major assets, with $222 million in outflows. This pushed its year-to-date flows to a net loss of $273 million, the weakest among tracked assets.
Bitcoin also recorded $194 million in outflows during the week but remains in positive territory for the year. Short-Bitcoin products saw an additional $4 million in inflows, suggesting some investors are positioning for further downside.
Solana followed with $12.3 million in outflows, while XRP stood out as one of the few assets to attract fresh capital. It posted $15.8 million in inflows.
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.
Spot Ether ETFs also extended their losses, recording $206.6 million in outflows for a second straight week. The reversal in flows suggests a broader shift toward risk-off sentiment among investors.
