Crypto investment products recorded their first weekly outflows in five weeks, with $414 million leaving the market as investors turned cautious amid rising inflation concerns and escalating tensions in the Middle East.
The pullback followed a shift in expectations for the US Federal Open Market Committee (FOMC) meeting in June, with forecasts moving from potential rate cuts to possible rate hikes—signaling a more challenging macro environment for risk assets, according to CoinShares.
As a result, total assets under management dropped to $129 billion, returning to levels last seen in early February and roughly in line with April 2025, during the early phase of Trump-era tariff pressures, said CoinShares head of research James Butterfill.
The reversal in flows points to a growing risk-off sentiment, as macroeconomic pressures continue to shape investor behavior and dampen demand for digital assets.
Ether leads outflows
Ether recorded the largest declines among major assets, with $222 million in outflows, bringing its year-to-date total to a net loss of $273 million—the weakest performance among tracked assets.
Bitcoin also saw $194 million in outflows during the week but remains in positive territory overall, with $964 million in net inflows for the year. Meanwhile, short-Bitcoin investment products attracted an additional $4 million, indicating that some investors are positioning for further downside.
Solana followed with $12.3 million in outflows, while XRP stood out as one of the few assets to attract fresh capital, recording $15.8 million in inflows.
Spot Bitcoin, Ether ETFs see weekly outflows
Signs of a broader risk-off shift are also visible in crypto exchange-traded funds. Spot Bitcoin ETFs ended a four-week streak of inflows, posting $296 million in net outflows last week after drawing more than $2.2 billion earlier in the month.
Spot Ether ETFs also continued their downward trend, logging $206.6 million in outflows for the second consecutive week.
