Crypto Outflows Hit $1.17 Billion as U.S. Investors Pull Back

Digital asset investment products recorded $1.17 billion in crypto outflows during the latest reporting week, marking the second consecutive week of negative flows.

The sell-off stems from market volatility following the October 10 liquidity cascade and growing uncertainty about whether the Federal Reserve will cut interest rates in December.

According to the latest CoinShares report, Bitcoin bore the brunt of the crypto outflows, with investors withdrawing $932 million from Bitcoin-focused products. Ethereum wasn’t spared either, seeing $438 million leave the market.

What’s interesting is that short Bitcoin ETPs—investment products that profit when Bitcoin prices fall—pulled in $11.8 million.

This marks one of the highest weekly inflows for these bearish bets since May 2025, suggesting some investors are actively betting against Bitcoin’s near-term price action.

Trading volumes stayed elevated at $43 billion for the week, with a brief recovery on Thursday as hopes emerged around resolving the U.S. government shutdown. But those hopes quickly faded by Friday, triggering fresh outflows.

Regional Crypto Outflows Breakdown: U.S. Weakness vs. European Strength

The geographic breakdown reveals a stark contrast. U.S.-based products took a $1.22 billion hit, shouldering nearly all the week’s losses.

Meanwhile, European investors moved in the opposite direction. Germany and Switzerland recorded inflows of $41.3 million and $49.7 million, respectively, showing sustained confidence despite American pessimism.

This regional split matters for traders watching institutional sentiment. When U.S. funds see heavy withdrawals while European counterparts buy the dip, it often signals different macroeconomic concerns or regulatory expectations between markets.

Altcoins Buck the Trend with Solana Leading

While major assets struggled, alternative cryptocurrencies showed resilience. Solana led with $118 million in inflows last week alone, bringing its nine-week total to an impressive $2.1 billion.

Other altcoins also attracted fresh capital, including HBAR with $26.8 million and Hyperliquid with $4.2 million.

For crypto enthusiasts, this pattern suggests investors are diversifying beyond Bitcoin and Ethereum, possibly seeking higher growth potential or hedging against major asset volatility.

The continued strength in altcoins during broader market weakness could signal shifting investor preferences worth monitoring closely.