Crypto Investments Snap 19-Week Inflow Streak With $415M Exit

• Crypto investments saw $415M in outflows, marking the first decline after a 19-week post-U.S. election inflow streak.
• Bitcoin led the outflows with $430M, reflecting its sensitivity to interest rate expectations.
• The outflows were likely triggered by Jerome Powell’s hawkish testimony and higher-than-expected U.S. inflation data.

Investors Pull $415M From Crypto

After 19 consecutive weeks of inflows post-U.S. election, digital asset investment products saw a sharp reversal, with $415 million in outflows—the first major decline in months, according to CoinShares .

This streak had previously amassed $29.4 billion, significantly surpassing the $16 billion recorded 19 weeks after U.S. spot ETFs launched in January 2024.

The U.S. accounted for the bulk of the outflows, with $464 million withdrawn, while other markets remained relatively stable.

However, Germany, Switzerland, and Canada saw inflows of $21 million, $12.5 million, and $10.2 million, respectively.

Bitcoin Leads Withdrawals

Bitcoin, known for its sensitivity to interest rate expectations, saw the largest withdrawals, totaling $430 million last week.

Short-Bitcoin products also faced outflows of $9.6 million, indicating a lack of bearish positioning.

Among altcoins, Solana attracted the highest inflows, at $8.9 million, followed by XRP, at $8.5 million, and Sui, at $6 million.

Meanwhile, blockchain equities continued to gain traction, with $20.8 million in inflows, pushing year-to-date gains to $220 million.

Despite last week’s downturn, year-to-date inflows remain positive at $6.9 billion, showing resilience in the market.

Funds Moves And Fed’s Effect

The largest outflows came from Fidelity ETFs, at $282 million; ARK 21 Shares, at $163 million; and Grayscale Investments, at $140 million.

In contrast, iShares ETFs saw the highest inflows, $130 million, followed by ProShares ETFs, $52 million.

James Butterfill, author of the research on weekly investments at CoinShares, said Fed Chair testimony on a more hawkish monetary policy hurt crypto last week.

“We believe these outflows were triggered by the Congressional meeting with Fed Chair Jerome Powell, who signalled a more hawkish monetary policy stance, coupled with U.S. inflation data exceeding expectations,” Butterfill said.