Key Takeaways
- Digital asset investment products saw a second consecutive week of outflows totaling over $1 billion.
- Solana investment products were the only ones in green with over $118 million in inflows.
- BTC products saw $932 million in outflows while ETH products recorded $438 million in outflows.
After weeks of redemptions, the bleeding in crypto investment products shows little sign of stopping.
According to new data from CoinShares, crypto products saw over $1.17 billion in outflows last week, marking the second straight week of billion-dollar losses — one of the steepest two-week stretches of the year.
The exodus reflects rising unease in financial markets as investors contend with a historic 40-day U.S. government shutdown and growing uncertainty over the next Federal Reserve rate cut.
Even as Washington moved over the weekend toward reopening the government, traders are still grappling with the fallout of more than a month without fresh economic data — leaving policymakers flying blind ahead of December’s key interest rate meeting.
Bitcoin and Ethereum Lead the Outflows
Bitcoin investment products bore the brunt of the retreat, recording $932 million in outflows, while Ethereum funds saw an additional $438 million pulled, together accounting for nearly all of last week’s losses.
The sell-off was amplified by volatility following October’s liquidity cascade and investors’ reassessment of risk in a tightening macro environment.
CoinShares analysts said that even with elevated trading activity — weekly ETP volumes hit $43 billion — sentiment remained fragile.
Short Bitcoin ETPs were among the few beneficiaries, drawing $11.8 million in inflows, the largest weekly total since May 2025.
The Missing Data Problem
With the U.S. government shuttered for over a month, the release of key indicators such as inflation, jobs, and GDP data has been on pause.
That means when the Federal Reserve convenes in December, officials will have to make a policy decision without the traditional guideposts that typically anchor rate deliberations.
The Fed will either have to rely on older figures or market-based signals — and neither provides much comfort in a market this volatile.
Investors had initially cheered reports of a possible rate cut this winter, but comments from Fed Chair Jerome Powell last week were interpreted as hawkish, fueling another wave of outflows across digital asset markets.
Solana Shines Amid the Chaos
Against that backdrop, Solana was the week’s lone bright spot. SOL investment products attracted $118 million in inflows, bringing its nine-week total above $2.1 billion.
Other altcoins, including HBAR ($26.8 million) and Hyperliquid ($4.2 million), also saw modest gains.
A Tentative Turnaround Ahead?
As of writing, crypto markets had begun to stir.
Reports of a shutdown resolution and a new $2,000 stimulus package proposed by President Donald Trump lifted sentiment across digital assets.
Bitcoin had climbed back above $106,000, while Ethereum regained $3,650, sparking hopes of a short-term rebound after two bruising weeks of fund withdrawals.
Still, analysts warn that unless the Federal Reserve and Treasury provide clear signals on fiscal and monetary direction — and government agencies fully resume operations — volatility is likely to remain elevated.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
