Crypto Investment Products Bleed $1.4 Billion in Single Week—Largest Outflows Since March
Crypto's institutional exodus hits fever pitch as funds hemorrhage capital at alarming rates.
The Great Unwinding
Digital asset products just witnessed their worst weekly outflow since spring—a staggering $1.4 billion vanished from crypto investment vehicles. That marks the largest single-week withdrawal since March, signaling mounting institutional skittishness despite crypto's relentless march toward mainstream adoption.
Wall Street's Cold Feet
Traditional finance players are pulling back hard—cutting exposure, bypassing new allocations, and retreating to safer harbors. The numbers don't lie: seven straight days of net redemptions show even the biggest crypto bulls are hitting pause. Maybe they finally read the fine print on 'volatility.'
Not even a bullish macro outlook or rising retail interest could stem the tide. Classic finance move—pile in at the top, panic-sell the dip.
Bitcoin, Ethereum lead largest outflows since March
Global crypto investment products recorded $1.43 billion in outflows last week, the largest since March, according to James Butterfill, Head of Research at CoinShares, in a Monday report.
Bitcoin products saw the largest outflows, with an exodus of $1 billion last week, while Ethereum products shed $440 million.
The sell-offs were largely driven by cautious sentiment among investors prior to Federal Reserve (Fed) Chair Jerome Powell's speech at the Jackson Hole Economic Symposium on Friday, noted Butterfill.
Investors' pessimism about the Fed's possible interest rate decision pushed the market downwards early in the week, with outflows reaching $2 billion. However, sentiments quickly reversed after Powell's speech hinted at the likelihood of a more dovish Fed policy stance, with Ethereum leading a market-wide recovery.
"This shift in tone was more strongly reflected in Ethereum than in Bitcoin. Ethereum saw a sharp mid-week recovery," wrote Butterfill.
Ethereum products have also netted $2.5 billion in month-to-date inflows, accounting for 26% of its total net flows this year. On the other hand, Bitcoin products have seen $1 billion in outflows month-to-date, signaling a growing shift in investor sentiment toward ETH.
Bitcoin is changing hands at $112,500, down 1.5%, while Ethereum is trading around $4,590, down 6% over the past 24 hours.
Meanwhile, altcoin products, including XRP, Solana and Cronos saw inflows of $25 million, $12 million, and $4.4 million, respectively, last week. Sui and Ton suffered outflows of $12.9 million and $1.5 million.
