Spot Bitcoin ETFs snapped a four-week run of gains last week, posting $296 million in net outflows after pulling in more than $2.2 billion earlier in the month. The crypto reversal was swift — and it wasn’t limited to Bitcoin.
Ether Takes The Hardest Hit
Ether led all assets in outflows, shedding $222 million in a single week. That brought its year-to-date total into the red, with a net loss of $273 million — the worst performance among tracked assets.
Spot Ether ETFs also recorded $206 million in outflows for a second straight week, a sign that institutional demand for the second-largest cryptocurrency has been cooling steadily.
Bitcoin fared better in the long run. Despite $194 million leaving Bitcoin funds last week, the asset remains up $964 million in net inflows for the year.
A small group of investors even moved in the opposite direction — short-Bitcoin products drew $4 million in fresh capital, suggesting some are betting on more losses ahead.
Across the board, total assets under management in digital asset products dropped to close to $130 billion.
According to CoinShares head of research James Butterfill, that figure puts the market back at levels not seen since early February — broadly in line with where things stood in April 2025 during the first wave of US President Donald Trump’s tariffs.
Solana lost a little over $12 million over the same period. XRP was the exception. Reports from CoinShares show the token attracted close to $16 million in new capital, standing apart from the widespread exodus hitting nearly every other major asset.
What Spooked Investors
Three things rattled markets last week: inflation fears, shifting expectations around US interest rates, and rising tensions in the Middle East.
The most consequential of the three may be the rate outlook. Expectations heading into the June Federal Open Market Committee meeting moved away from potential cuts and toward possible hikes — a major shift that historically pushes investors away from riskier assets.
Digital assets tend to feel that pressure quickly. When borrowing costs look like they’re going up, money moves toward safer ground.
A Five-Week Streak Comes To An End
The $414 million in total outflows snapped what had been five consecutive weeks of inflows. Data from CoinShares shows the pullback reflected a broader shift toward risk-off 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 what signals come out of the Fed in the weeks ahead. For now, the money has moved — at least temporarily — to the sidelines.
Featured image from Getty Images, chart from TradingView
