Digital asset investment products faced their first week of net outflows in nearly four months, with $223 million exiting the market.
The reversal follows a sharp pivot in investor sentiment triggered by hawkish messaging from the U.S. Federal Reserve and unexpectedly strong economic data, prompting cautious positioning and profit-taking.
From strong inflows to sudden reversal
The week began with notable momentum, recording $883 million in inflows across digital asset funds. However, as the week progressed, hawkish commentary from the FOMC and a string of surprisingly positive U.S. macro indicators dampened enthusiasm for risk assets. By Friday, a combination of tighter liquidity fears and a risk-off environment led to over $1 billion in single-day outflows.
Despite a brief dovish undertone from weaker payroll figures, the overall market reaction pointed toward caution. Analysts suggest that the week’s pullback reflects short-term profit realization, especially given the $12.2 billion in net inflows recorded over the past 30 days — a figure that accounts for nearly half of all 2025 inflows to date.
Bitcoin hit hardest as investors rotate
Bitcoin bore the brunt of outflows, losing $404 million over the week — a significant chunk compared to peers. S
till, its year-to-date inflows remain solid at $20 billion, underscoring its role as a macro-sensitive bellwether for institutional crypto exposure. The dip may signal growing concern over rate trajectory and U.S. dollar strength.
Ethereum and select altcoins remain resilient
Ethereum stood out as a bright spot, posting its 15th consecutive week of net inflows, adding $133 million despite minor late-week selling pressure. The sustained interest highlights enduring confidence in Ethereum’s evolving role as an institutional-grade Layer 1 asset.
Smaller but meaningful inflows were also recorded across altcoins. XRP brought in $31.2 million, followed by Solana ($8.8 million) and SEI ($5.8 million). Meanwhile, Aave and Sui saw modest gains of $1.2 million and $0.8 million, respectively — signaling continued diversification among digital asset fund managers.
Outlook: pause or pivot?
While the weekly pullback broke a 15-week winning streak, analysts view the shift more as a healthy correction than a structural reversal. The scale of inflows in recent months suggests confidence remains intact, though upcoming inflation data and Jackson Hole commentary may dictate near-term flows.
Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.
Tags: Bitcoin