Crypto Funds Suffer $952M Outflow as Bitcoin and Ethereum Investors Pull Back

Crypto investment products saw a sharp reversal with over $952 million withdrawn, breaking a four-week streak of inflows. 

Bitcoin and Ethereum funds led the sell-off as regulatory delays in the U.S. and growing investor caution weighed on market confidence

Bitcoin investment products saw $460 million withdrawn last week, marking strong selling but at a slower pace than last year. So far in 2025, year-to-date inflows into Bitcoin products total $27.2 billion, which is less than the $41.6 billion seen at the same time in 2024, making it unlikely that Bitcoin will set a new annual inflow record. 

At the same time, Ethereum investment products experienced the largest outflow, with $555 million withdrawn, the biggest loss among tracked cryptocurrencies.

The sell-off was driven by delays in U.S. market regulations and growing caution among large investors, as uncertainty around regulatory timelines weakened confidence in U.S.-listed crypto funds.

This comes after the U.S. Senate postponed the CLARITY Act, which was meant to clarify how digital assets are classified and regulated. David Sacks, U.S. crypto policy lead, confirmed that the bill’s review is now scheduled for January.

Solana and XRP See Inflows as Overall Crypto Assets Decline

Despite the outflows in Bitcoin and Ethereum funds, top altcoins continue to attract capital. Solana investment products received $48.5 million this week, while XRP funds attracted $69.2 million, keeping up a steady inflow trend overall for several weeks.

The funds coming into Solana and XRP show that investors are picking certain assets carefully. This rotation contrasts with ongoing struggles for Bitcoin and Ethereum products.

According to James Butterfill, the head of research at CoinShares, the total assets under management are currently at $46.7 billion, down from $48.7 billion at the same time in 2024, suggesting that the total for the full year will be lower.