Crypto investment products recorded their first weekly outflows in five weeks, with $414 million leaving the market as investors grew cautious amid rising inflation risks and escalating tensions in the Middle East. The retreat coincided with a shift in expectations for the upcoming Federal Open Market Committee meeting, where the possibility of rate cuts has given way to speculation about rate hikes. This change in the interest rate outlook signals a more difficult environment for risk assets broadly, according to a report published Monday by CoinShares.
Total assets under management across crypto investment products fell to $129 billion, returning to levels last seen in early February. CoinShares head of research James Butterfill described the figure as broadly comparable to April 2025, during the initial phase of tariffs introduced under the Trump administration. The decline reflects a broader reversal in investor sentiment, with macroeconomic concerns now weighing heavily on demand for digital assets.
Ether led the losses among major tracked assets, recording $222 million in outflows for the week. That brings its year-to-date net flows to a loss of $273 million, making it the weakest performer among assets monitored by CoinShares. The figures underscore the degree to which risk-off sentiment has affected the second-largest cryptocurrency by market capitalisation.
Bitcoin also saw $194 million in outflows during the same period, though it remains in positive territory for the year with $964 million in net inflows. Short-Bitcoin products attracted an additional $4 million in inflows, indicating that some investors are positioning for further price declines. Solana posted $12.3 million in outflows, while XRP stood out as one of the few assets to attract fresh capital, drawing $15.8 million in inflows over the week.
The risk-off trend extended into exchange-traded fund markets as well. Spot Bitcoin ETFs ended a four-week inflow streak, posting $296 million in net outflows last week after attracting more than $2.2 billion earlier in the month. The reversal marks a notable shift in momentum for a product category that had seen sustained investor interest in recent weeks.
Spot Ether ETFs also continued to struggle, recording $206.6 million in outflows for a second consecutive week. The back-to-back losses highlight the extent to which broader macro pressures are affecting investor appetite across the digital asset space. Whether the outflow trend persists will likely depend on how inflation data and geopolitical developments evolve in the near term.
Originally reported by CoinTelegraph.
