Spot Bitcoin ETFs posted a four-week winning streak last week, posting $296 million in net outflows after raking in more than $2.2 billion earlier in the month. Crypto’s reversal has been rapid – and it hasn’t been limited to Bitcoin.
Ether is hit hardest
Ether led all assets in outflows, losing $222 million in a single week. That brought its annual total back into the red, with a net loss of $273 million – the worst performance among assets tracked.
Spot Ether ETFs also saw $206 million in outflows for a second straight week, a sign that institutional demand for the second-largest cryptocurrency is steadily cooling.
Bitcoin fares better in the long run. Although $194 million was withdrawn from Bitcoin funds last week, the asset remains up $964 million in net inflows for the year.
A small group of investors even went in the opposite direction: Short Bitcoin products attracted $4 million in fresh capital, suggesting some are betting on further losses to come.
Overall, total assets under management in digital asset products have fallen to almost $130 billion.
According to James Butterfill, head of research at CoinShares, this figure brings the market back to levels not seen since early February – broadly in line with the situation in April 2025 during US President Donald Trump’s first wave of tariffs.
Solana lost just over $12 million over the same period. XRP was the exception. Reports from CoinShares show that the token has attracted nearly $16 million in new capital, which stands out from the widespread exodus affecting almost every other major asset.
What scared investors
Three things shook markets last week: inflation fears, shifting expectations for U.S. interest rates and growing tensions in the Middle East.
The most important of the three might be the rate outlook. Expectations heading into the June meeting of the Federal Open Market Committee have shifted away from potential cuts and toward possible hikes — a major shift that has historically kept investors away from riskier assets.
Digital assets tend to feel this pressure quickly. When borrowing costs appear to be rising, money heads to safer ground.
Five-week streak comes to an end
The $414 million in total outflows ended five straight weeks of inflows. Data from CoinShares shows that the pullback reflects a broader shift toward risk-averse behavior among investors, driven more by macroeconomic forces than anything specific to crypto markets.
Whether last week marks a turning point or a brief pause will likely depend on signals from the Fed in the weeks ahead. For now, the money has remained – at least temporarily – on the sidelines.
Featured image from Getty Images, chart from TradingView
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