Crypto Fund Outflows Total $1.17B Led by US Investors
Crypto fund outflows hit $1.17 billion last week, marking a second consecutive week of net redemptions led by US-based products. Bitcoin funds accounted for $932 million in withdrawals, while Ethereum products saw $438 million redeemed. Conversely, short Bitcoin ETPs attracted $11.8 million, the largest weekly inflow for bearish bets since May. Select altcoins bucked the trend: Solana (SOL) raised $118 million, Hedera Hashgraph (HBAR) drew $26.8 million, and Hyperliquid (HYPE) added $4.2 million. Regional dynamics varied: US funds recorded $1.22 billion in outflows, whereas European markets, notably Germany and Switzerland, posted inflows of $41.3 million and $49.7 million, respectively. Total ETP trading volume remained elevated at $43 billion, briefly spiking amid US government shutdown-resolution hopes before renewed withdrawals. These crypto fund outflows, combined with heightened liquidation levels, underscore divergent regional risk appetites and ongoing liquidity pressures, providing traders with key indicators for market stability.
Bearish
The record crypto fund outflows totaling $1.17 B, led by Bitcoin ($932 M) and Ethereum ($438 M) redemptions, indicate sustained selling pressure. Although short Bitcoin ETPs and selected altcoin inflows show hedging and rotation opportunities, the net liquidity drain and concentrated US-driven withdrawals point to bearish near-term sentiment. In the short term, traders may face increased volatility as funds continue to exit, pressuring prices. Over the longer term, persistent outflows and uncertain macro conditions could limit upside momentum unless liquidity improves or policy clarity arises.