Paul Johnson Global crypto funds faced $223 million in outflows for the first time in 15 weeks as investors reacted to hawkish Fed signals and strong U.S. economic data. Bitcoin led outflows while Ethereum maintained its inflow streak.
Global crypto investment products experienced a rare reversal last week as net outflows totaled $223 million, marking the first decline in 15 weeks. The sudden shift came as investors reacted to hawkish signals from the U.S. Federal Reserve and stronger-than-expected economic data, highlighting a period of profit taking in the crypto market.
According to asset manager CoinShares, Bitcoin-based funds led the outflows, shedding $404 million, while Ethereum funds continued their uninterrupted streak of inflows, extending a positive run that now spans 15 consecutive weeks. The trend indicates a clear divergence in investor sentiment between the two largest cryptocurrencies.
Despite a strong start to the week with net inflows around $883 million in the first few days, substantial withdrawals in the latter half flipped the overall picture negative. CoinShares Head of Research James Butterfill suggested that the outflows were likely triggered by the Federal Open Market Committee meeting and a series of better-than-expected U.S. economic reports. “While weak payrolls at the end of the week had dovish implications, general risk off sentiment dominated,” Butterfill explained. He added that over $1 billion in withdrawals occurred on Friday alone, suggesting minor profit taking after $12.2 billion in net inflows over the past 30 days.
Bitcoin Leads Outflows as Ethereum Stays Strong
Bitcoin funds were the main contributors to last week’s negative sentiment, recording $404 million in outflows. Despite this, year-to-date inflows remain robust at $20 billion, reflecting Bitcoin’s sensitivity to changes in monetary policy. U.S. spot Bitcoin ETFs were particularly affected, losing $642.9 million during the week.
In contrast, Ethereum-based investment products remained resilient, adding $133 million in net inflows. The positive trend reinforces strong investor confidence in Ethereum, which continues to attract capital despite market volatility. U.S. spot Ethereum ETFs accounted for $154.3 million of last week’s inflows, although they experienced $152.3 million in net outflows on Friday, illustrating the short-term fluctuations in trading activity.
Regional Trends Highlight Market Sentiment
Geographically, the United States saw the largest outflows with $383 million leaving crypto funds, followed by Germany and Sweden at $35.5 million and $33.3 million respectively. Conversely, Hong Kong and Switzerland saw positive inflows of $170.4 million and $52.4 million, highlighting pockets of continued investor confidence in global markets.
Other altcoins also demonstrated selective optimism. XRP funds received $31.2 million in net inflows, Solana funds added $8.8 million, and Sei funds gained $5.8 million, showing that investors are still willing to diversify their portfolios amid market turbulence.
Investor Takeaways
The $223 million outflow from global crypto funds represents a minor correction rather than a structural change in investor sentiment. Butterfill emphasized that the withdrawals are consistent with profit taking, especially after the substantial inflows seen over the past month. Market participants continue to weigh Federal Reserve signals against cryptocurrency fundamentals, leading to temporary reallocation of assets.
For Bitcoin, sensitivity to monetary policy remains a key factor in driving investment patterns, while Ethereum’s continued inflow streak highlights sustained optimism for network upgrades and decentralized finance growth. Investors monitoring global crypto funds should expect continued fluctuations influenced by U.S. economic data and Federal Reserve decisions.
Conclusion
Global crypto funds experienced a rare net outflow of $223 million last week, breaking a 15-week streak of inflows. Bitcoin led the outflows as investors reacted to hawkish Fed signals, while Ethereum and select altcoins maintained positive momentum. Regional data suggests the United States faced the highest withdrawals, but markets in Asia and Switzerland continued to attract capital. The developments highlight ongoing profit taking and cautious positioning among crypto investors as macroeconomic signals shape market behavior.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
