Crypto investment products recorded their first weekly outflows in five weeks, with $414 million leaving the market as investors reacted to inflation concerns and escalating tensions in the Middle East. The shift followed changing expectations ahead of the June Federal Open Market Committee (FOMC) meeting, where outlooks moved from possible rate cuts to potential rate hikes, signaling tighter financial conditions.
According to CoinShares, total assets under management fell to $129 billion, returning to levels last seen in early February and broadly comparable to April 2025 during the initial phase of tariff measures. James Butterfill, head of research at CoinShares, noted that the reversal reflects a broader shift toward risk-off sentiment driven by macroeconomic uncertainty.
Ether Leads Losses While Bitcoin ETFs Reverse Inflows
Ether led the outflows among major assets, recording $222 million in withdrawals and pushing its year-to-date flows to a net loss of $273 million, the weakest performance among tracked digital assets. Bitcoin followed with $194 million in outflows but remains positive for the year with $964 million in net inflows. Short-Bitcoin products recorded $4 million in inflows, indicating some investors are positioning for further downside.
Solana saw $12.3 million in outflows, while XRP attracted $15.8 million in inflows, making it one of the few assets to gain fresh capital. Meanwhile, spot Bitcoin ETFs ended a four-week inflow streak with $296 million in net outflows after recording more than $2.2 billion in inflows earlier in the month. Spot Ether ETFs also continued to decline, posting $206.6 million in outflows for a second consecutive week.
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