Crypto Funds Bleed $1.2 Billion Amid US Weakness, Except Solana and XRP

Core Insights - Digital asset investment products experienced significant outflows of $1.17 billion last week, marking the second consecutive week of losses due to US economic uncertainty and October volatility [1] - The US market led global outflows with $1.22 billion, reflecting negative sentiment amid concerns over interest rate cuts and potential government shutdowns [2] - Federal Reserve Chair Jerome Powell's hawkish comments intensified market fears, leading to a shift away from risk assets, particularly in digital investment products [3] Outflows by Asset - Bitcoin faced the largest withdrawals of $932 million, indicating its sensitivity to US policy changes and investor reactions to economic conditions [6] - Ethereum also saw significant outflows of $438 million, despite previous inflows, suggesting mixed sentiment among institutional investors regarding its short-term outlook [7] - Short Bitcoin ETPs attracted $11.8 million in new funds, the highest since May 2025, reflecting growing concerns about potential headwinds for Bitcoin [7] Regional Sentiment - European markets displayed more optimism, with Germany and Switzerland recording inflows of approximately $91 million, contrasting with the negative sentiment in the US [3][4] - ETP trading volumes remained robust at $43 billion during the week, with a temporary slowdown in outflows due to hopes of averting a government shutdown [4] Notable Trends - Solana distinguished itself with $118 million in inflows, totaling $2.1 billion over nine weeks, indicating rising institutional demand [9]