Digital asset investment products hemorrhaged $454 million last week as investors recalibrated expectations for Federal Reserve policy, according to the latest CoinShares data.
At a Glance
- Bitcoin-linked products lost $405 million in seven days
- US investors drove $569 million in outflows
- XRP and Solana bucked the trend with inflows of $45.8 million and $32.8 million
- Why it matters: The reversal erased nearly all of January’s early gains and signals waning risk appetite
The sudden shift erased most of the $1.5 billion that had flowed into crypto vehicles during the first two trading sessions of 2025. Four straight days of net withdrawals totaled roughly $1.3 billion, CoinShares said, leaving the sector nursing its worst weekly showing since late 2024.
Fed Outlook Triggers Selloff
CoinShares pinned the turnaround on fresh skepticism that the Fed will cut interest rates in March. Stronger-than-expected macro data last week dampened hopes for an imminent pivot, prompting investors to lighten exposure across risk assets.
Bitcoin bore the brunt. Products tied to the largest cryptocurrency bled $405 million, while short-Bitcoin vehicles also saw $9.2 million exit-an indication that traders lack conviction on either directional bet.
Ethereum fared little better. ETH-based products shed $116 million, and multi-asset strategies dropped $21 million. Smaller outflows hit Binance-linked instruments ($3.7 million) and Aave products ($1.7 million).
Altcoins Swim Against the Tide
Not every token felt the chill. XRP attracted $45.8 million, the largest weekly inflow on record for the asset. Solana added $32.8 million, Sui pulled in $7.6 million, and Chainlink saw $3 million of fresh cash.
| Asset | Weekly Flow |
|---|---|
| Bitcoin | -$405M |
| Ethereum | -$116M |
| XRP | +$45.8M |
| Solana | +$32.8M |
| Sui | +$7.6M |
| Chainlink | +$3M |
Geography of the Pullback
Regionally, the United States dominated outflows with $569 million leaving digital-asset products. Elsewhere, sentiment stayed net positive, though at modest levels.
Germany led inflows at $58.9 million, followed by Canada ($24.5 million) and Switzerland ($21 million). Australia, the Netherlands, France, Sweden and New Zealand posted smaller gains ranging from $0.3 million to $4.7 million.
Options Market Echoes Caution
QCP Capital noted that Bitcoin’s inability to hold above $92,000 last week repeated a fourth-quarter pattern in which rallies quickly faded. Traders rolled long-dated call positions to later expiries, a move the firm labeled a “push-out of bullish expectations.”
“Continued selling during US trading hours, lingering supply pressures, and rising macro uncertainty are still weighing on prices,” QCP said, flagging high near-term volatility ahead of upcoming US economic and legal catalysts.
Key Takeaways
- Weekly outflows of $454 million reversed most early-January inflows
- Rate-cut doubts sparked the risk-off move
- Only a handful of altcoins managed to attract fresh capital
- Options markets show traders delaying upside bets
