Crypto Investment Funds See $223M Weekly Outflows After Fed Shock

Crypto investment funds recorded $223 million in net outflows last week, marking the first weekly loss in 15 weeks, according to the latest data from CoinShares. The reversal follows early-week inflows of $883 million and reflects market unease after hawkish signals from the U.S. Federal Reserve. Macro Sentiment Turns Risk-Off The outflows were likely triggered by the FOMC’s hawkish tone and stronger-than-expected U.S. economic data , which dampened risk appetite across markets. Despite weaker payroll numbers later in the week that hinted at potential policy easing, investor sentiment had already turned sour, leading to over $1 billion in outflows on Friday alone. Still, recent gains remain impressive. Over the past 30 days, crypto investment funds have attracted $12.2 billion in inflows, representing nearly 50% of all inflows in 2025 so far. Bitcoin Sees $404M Outflow, Largest of the Week Bitcoin led the outflows with $404 million, highlighting its vulnerability to macroeconomic news. However, the top crypto asset still holds $20.1 billion in year-to-date (YTD) inflows, and its total assets under management (AUM) remain strong at $174.3 billion. Ethereum Defies the Trend with $134M in Inflows In contrast, Ethereum recorded $133.9 million in inflows, marking its 15th consecutive week of gains. The asset now has $7.9 billion in YTD inflows, reflecting investor confidence despite broader market volatility. This resilience may be due to ETH's impressive price performance in recent weeks, coinciding with the network’s ten-year anniversary and renewed optimism for a potential run to its all-time high. Altcoins Post Mixed Results Meanwhile, other major altcoins also saw moderate inflows, including XRP with $31.3 million, Solana with $8.8 million, and Cardano with $1.3 million. However, Sui, Litecoin, and a few smaller-cap assets experienced mild outflows. U.S. Providers Lead Weekly Withdrawals Notably, outflows were concentrated among major U.S.-based providers. ARK 21Shares reported $442 million, the largest of the group. The Fidelity Wise Origin Bitcoin Fund followed with $354 million in outflows, and Grayscale with $243 million. Regionally, the United States saw $383 million in outflows, while Hong Kong ($170 million) and Switzerland ($52 million) reported inflows. Overall, despite last week’s outflows, the broader trend remains positive. With YTD inflows totaling over $29 billion, the market may simply be experiencing a short-term cooldown after a period of rapid accumulation.