Crypto Investment Products See $952M Weekly Outflows as Regulatory Uncertainty Weighs on Market

Crypto investment products recorded $952 million in net outflows last week, marking a sharp reversal after four consecutive weeks of inflows, according to data from CoinShares. The shift highlights growing investor caution driven by delays in U.S. crypto market structure legislation and increased concern over large-holder activity across major digital assets.

CoinShares noted that selling pressure was heavily concentrated in Bitcoin and Ethereum investment products, which together accounted for the majority of redemptions. The pullback followed renewed uncertainty around regulatory timelines in the United States, weakening confidence in U.S.-listed crypto exchange-traded products and other institutional vehicles.

Bitcoin products alone experienced $460 million in outflows during the week. While significant, CoinShares described the pace of selling as more muted compared to last year’s market cycle. Year-to-date inflows into Bitcoin products now stand at $27.2 billion, well below the $41.6 billion recorded over the same period last year. This growing gap makes a new annual inflow record increasingly unlikely, the firm said.

Ethereum-based investment products posted the largest losses among tracked digital assets, with weekly outflows totaling $555 million. CoinShares attributed Ethereum’s heightened sensitivity to ongoing regulatory debates, noting that the network has “the most to gain or lose” from the proposed CLARITY Act due to its central role in discussions around digital asset classification and oversight. Despite recent selling, Ethereum products have attracted $12.7 billion in inflows so far this year, more than double the $5.3 billion seen at the same point in 2024, signaling sustained longer-term investor interest.

In contrast, some large-cap altcoins bucked the broader trend. Solana investment products recorded $48.5 million in weekly inflows, while XRP products attracted $62.9 million, extending a multiweek pattern of steady demand. These inflows suggest selective positioning by investors rotating toward assets perceived as relatively resilient amid ongoing market headwinds.

Total crypto assets under management now stand at $46.7 billion, slightly below last year’s comparable level, according to CoinShares head of research James Butterfill. He added that continued regulatory delays, including the U.S. Senate’s postponement of the CLARITY Act markup until January, are prolonging uncertainty around exchange supervision and issuer obligations, keeping overall investor sentiment fragile.