Bitcoin and Ether products led heavy withdrawals for a second week, while select altcoins continued to attract investor interest.
The crypto investment landscape turned increasingly cautious last week as digital asset funds recorded a second consecutive week of outflows, totaling nearly $1.5 billion. According to new data, assets under management (AUM) in crypto exchange-traded products (ETPs) fell to $207.5 billion — the lowest level since mid-July, reflecting waning market confidence following persistent volatility.
Heavy Outflows From Bitcoin and Ether Funds
Data showed that crypto ETPs faced $1.17 billion in outflows, marking a 70% rise from the previous week’s $360 million. Analysts attributed the trend to lingering bearish sentiment following the October 10 flash crash and ongoing uncertainty over potential U.S. interest rate cuts in December.
“The continued outflows show investors remain cautious despite brief optimism midweek,” noted James Butterfill, head of research at CoinShares. He said that ETP trading volumes held steady at $43 billion, with a short-lived rebound on Thursday before outflows resumed Friday.
Bitcoin funds remained under the heaviest pressure, posting $932 million in withdrawals, slightly below the prior week’s $946 million. Ether funds also reversed gains, suffering $438 million in outflows after a $57 million inflow the previous week.
Altcoins Buck the Trend
Despite the broader downturn, several altcoins continued to attract fresh investment, led by Solana (SOL), which drew $118 million in inflows. Over the past nine weeks, SOL-based products have accumulated $2.1 billion in net inflows, signaling investor confidence in the blockchain’s growing ecosystem.
XRP, Hedera (HBAR), and Hyperliquid (HYPE) also showed resilience, with inflows of $28 million, $27 million, and $4.2 million, respectively. Analysts suggest that this divergence reflects a rotation toward high-growth altcoin ecosystems amid broader market caution.
After two straight weeks of outflows totaling $1.5 billion, crypto ETP assets under management dropped from over $254 billion in early October to $207.5 billion. While the pullback signals a period of consolidation, altcoin inflows hint at selective investor optimism as capital shifts toward networks showing real-world scalability and utility.
The data underscores a split market — with Bitcoin and Ether seeing profit-taking, while leading altcoins quietly attract long-term accumulation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.