Crypto investment products saw capital continue to flow into the sector last week, marking a fourth straight week of gains. However, the pace of investment slowed noticeably as investors digested signals from the U.S. Federal Reserve and monitored geopolitical developments in the Middle East.
According to a report released Monday by CoinShares, a leading digital asset investment firm, crypto exchange-traded products (ETPs) and exchange-traded funds (ETFs) attracted $230 million in net inflows. This positive trend was interrupted following the Federal Open Market Committee (FOMC) meeting on Wednesday, which triggered $405 million in outflows later in the week. The total for the week was a significant deceleration from the $1.06 billion recorded in the prior week.
Decoding the Slowdown: Fed’s “Hawkish Pause” Takes Center Stage
James Butterfill, Head of Research at CoinShares, pointed to the market’s interpretation of the Fed’s policy stance as the primary catalyst for the weekly volatility, rather than broader geopolitical tensions.
“The intra-week data supports this,” Butterfill noted, highlighting that strong inflows were recorded on Monday and Tuesday before reversing sharply in the immediate aftermath of the FOMC’s rate decision and press conference. The Fed’s description of the meeting as a “hawkish pause”—maintaining rates but signaling fewer anticipated cuts this year—appeared to dampen risk appetite across markets, including crypto.
Bitcoin Remains the Magnet, Ether’s Streak Ends
Bitcoin (BTC) was the undisputed driver of inflows, capturing $219.2 million of the total. This underscores its continued status as the primary gateway for institutional and retail investors gaining exposure to digital assets through regulated products.
In contrast, Ether (ETH) investment products experienced a reversal, reporting $27.5 million in outflows. This ended a three-week streak of positive flows for the second-largest cryptocurrency by market cap.
Solana (SOL) continued its impressive run, securing $17 million in inflows for the seventh consecutive week. Its cumulative inflows have now reached $136 million over that period, solidifying its position as a favored altcoin exposure within the ETP universe for recent months.
Other assets also saw modest but notable interest. Chainlink (LINK) and Hyperliquid (HYPE) recorded net inflows of $4.6 million and $4.5 million, respectively.
Year-to-Date and Total Market Snapshot
For the year to date, total inflows across all crypto ETPs have reached $1.4 billion. Bitcoin-specific products account for the vast majority of this, with $1.2 billion in inflows. Despite the weekly fluctuations, the total assets under management (AUM) for these products remain substantial at $138 billion, reflecting the growing scale of institutional crypto investment.
U.S. Spot Bitcoin ETFs: A Closer Look
U.S.-listed spot Bitcoin ETFs were a key component of the broader inflow trend, accounting for approximately 43% of the weekly gains with $95.2 million in net inflows. This extends their own four-week positive streak to a cumulative $2.2 billion, according to data from analytics firm SoSoValue.
However, the year-to-date picture for these flagship U.S. products remains negative, with roughly $400 million in total outflows since their January launch, indicating a volatile start to the year despite recent weeks’ gains.
Ether ETFs Continue to Struggle
Mirroring the broader trend for Ether, U.S. spot Ether ETFs also saw their three-week inflow streak conclude, suffering outflows of approximately $60 million last week. These funds have now experienced $599 million in outflows year-to-date. The broader global ETP market for Ether is also slightly negative for the year, by about $50 million.
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