Institutional appetite for crypto assets weakened again last week as digital asset investment products recorded $1.17 billion in outflows, marking a second consecutive week of losses amid renewed market volatility and macroeconomic uncertainty.
Key Takeaways:
- Crypto investment products saw $1.17 billion in outflows, marking a second straight week of institutional withdrawals.
- Bitcoin and Ethereum ETFs led the redemptions, with $1.22 billion and $508 million in outflows respectively.
- Despite heavy institutional selling, Bitcoin briefly rose 4.4% above $106,000.
According to the latest fund flow data, trading volumes in exchange-traded products (ETPs) stayed high at $43 billion, though investor sentiment remained fragile following the October 10 liquidity cascade.
A brief midweek rebound on optimism over a potential resolution to the U.S. government shutdown quickly faded, triggering another round of withdrawals by Friday.
US Leads $1.22B Crypto Fund Outflows as Bitcoin, Ethereum Face Heavy Selling
The US market accounted for the majority of the losses, with $1.22 billion in outflows, while Germany and Switzerland bucked the trend, recording inflows of $41.3 million and $49.7 million, respectively.
Bitcoin remained the focal point of redemptions, suffering $932 million in outflows last week.
In contrast, short Bitcoin ETPs saw inflows of $11.8 million, marking their strongest week since May 2025. Ethereum also saw heavy selling, with outflows reaching $438 million.
Despite the bearish trend, select altcoins showed resilience. Solana led with $118 million in inflows, bringing its nine-week total to $2.1 billion.
Other gainers included HBAR with $26.8 million and Hyperliquid with $4.2 million, underscoring investor interest in emerging blockchain ecosystems even as broader market sentiment remains cautious.
As reported, US spot Bitcoin ETFs saw massive redemptions last week, with $1.22 billion in net outflows, marking the third-largest weekly withdrawal on record, according to SoSoValue.
Friday alone accounted for $558.4 million in outflows, the biggest single-day loss since August, while Ethereum ETFs lost $508 million.
The largest redemptions were led by BlackRock’s IBIT, followed by Fidelity’s FBTC and Grayscale’s GBTC funds.
Despite the institutional outflows, Bitcoin’s price climbed 4.4%, briefly surpassing $106,000, suggesting retail activity and spot demand remain resilient even as large players trim exposure.
Factors such as inflation fears, central bank rate hikes, and geopolitical risks have driven risk aversion across markets.
Bitcoin Rebounds Above $106K as Shutdown Optimism Lifts Risk Sentiment: QCP
Optimism over a potential US government shutdown resolution boosted risk sentiment across global markets, with Bitcoin rebounding to $106,000 after several dips below $100,000, according to a new report by QCP Capital.
The firm noted that despite ongoing spot ETF outflows and selling from long-term holders (“OGs”), crypto joined equities in a broad relief rally.
Risk reversals also showed fading demand for downside protection, signaling reduced fear of another major liquidation.
The report compared the current wave of OG selling to past events like Silk Road and Mt. Gox distributions, noting that deeper market liquidity has allowed these supply shocks to be absorbed without breaking structural momentum.
The firm said Digital Asset Treasuries (DATs) remain a key sentiment driver but have shown limited activity amid tight trading ranges.
While Bitcoin’s strong rejection of the $100K level offers some technical support, QCP expects continued range-bound trading in the medium term.
Any push above $118K could meet renewed selling from OG wallets unless macro tailwinds and ETF inflows strengthen meaningfully.
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