Digital asset investment products experienced a significant shift last week, with net outflows totaling $513 million globally. The movement was largely driven by investors pulling funds from Bitcoin products, while simultaneously increasing their positions in Ethereum, signaling a strategic rotation amid price weakness.
Data reveals that Bitcoin-focused funds saw nearly a billion dollars in withdrawals. In contrast, Ethereum-based funds attracted hundreds of millions in new capital, suggesting a 'buy the dip' mentality has taken hold among certain investors.
Key Takeaways
- Global crypto investment products saw $513 million in net outflows last week.
- Bitcoin-based funds were the primary source of withdrawals, losing $946 million.
- Ethereum-based funds bucked the trend, attracting $205 million in new investment.
- Outflows were heavily concentrated in the United States, while Europe and Canada saw net inflows.
- Solana and XRP products also gained capital amid speculation over potential U.S. ETF approvals.
A Tale of Two Assets: Bitcoin Outflows and Ethereum Inflows
The digital asset market displayed a clear divergence in investor sentiment last week. While the headline figure showed over half a billion dollars leaving the space, the details paint a more complex picture of capital rotation. Bitcoin products bore the brunt of the selling pressure, with outflows reaching a substantial $946 million.
This withdrawal was particularly pronounced in the United States, where spot Bitcoin exchange-traded funds (ETFs) alone recorded $1.2 billion in net outflows. This marks the second-largest weekly withdrawal for these products since their launch in January 2024.
Market Context
These movements follow a period of heightened market volatility, including a significant liquidation event on October 10. Since that event, total net outflows from exchange-traded products (ETPs) have reached $668 million. Despite the outflows, trading volumes in these products remained elevated at $51 billion for the week, nearly double the weekly average for 2025.
Investors See Opportunity in Ethereum's Price Drop
While Bitcoin investors took a more cautious stance, others viewed the recent price dip in Ethereum as a prime buying opportunity. Ethereum-based investment funds attracted $205 million in net inflows over the same period.
This trend suggests that investors are not abandoning the crypto market entirely but are instead reallocating capital. The price of Ethereum fell approximately 6.3% last week, a downturn that appears to have encouraged accumulation rather than panic selling.
"Ethereum investors bought the dip, offset by Bitcoin outflows," noted James Butterfill, Head of Research at asset manager CoinShares, arguing that investors saw the price weakness as an opportunity.
A notable portion of the Ethereum inflows, $457 million, was directed into a 2x leveraged ETP. This indicates a high level of conviction among some traders who are betting on a significant short-term price recovery for the asset.
Geographic Divides in Crypto Investment
The flow of funds also revealed a stark geographical split. The United States was the epicenter of the withdrawals, with a total of $621 million exiting U.S.-based crypto investment products.
In sharp contrast, European and Canadian markets showed continued confidence. Funds in Germany, Switzerland, and Canada attracted positive net inflows, demonstrating a more bullish sentiment outside the U.S.
- Germany: +$59.3 million in inflows
- Switzerland: +$48 million in inflows
- Canada: +$42.3 million in inflows
This divergence highlights differing regional reactions to recent market events and macroeconomic factors influencing investor decisions.
Altcoin ETFs Generate Excitement
Beyond the two largest cryptocurrencies, other digital assets also captured investor interest. The anticipation surrounding potential U.S. approvals for Solana and XRP ETFs fueled significant inflows into existing products tied to these assets.
Solana-linked ETPs attracted $156 million in new capital, while XRP products saw inflows of $73.9 million. This suggests that investors are positioning themselves ahead of potential regulatory news, hoping to capitalize on the same kind of market reaction seen with the launch of Bitcoin and Ethereum ETFs.
The sustained high trading volumes and strategic inflows into assets like Ethereum and Solana indicate that while some investors are de-risking from Bitcoin, others are actively seeking new opportunities within the broader digital asset ecosystem.
