Digital asset investment products have suffered their first significant outflows of 2025, signaling a shift in investor sentiment.
According to CoinShares, investors pulled $415 million from these products last week, marking a sharp reversal from the consistent inflows since the US elections in November 2024.
The Feb. 17 report noted that the products attracted $24.9 billion over the past 19 weeks, surpassing the $16 billion recorded in the first 19 weeks following the launch of spot Bitcoin exchange-traded funds (ETFs) in January 2024.
James Butterfill, CoinShares’ Head of Research, attributed the recent outflows to concerns over potential hawkish monetary policies in the US and inflation data that exceeded expectations.
He explained:
“We believe these outflows were triggered by the Congressional meeting with Fed Chair Jerome Powell, who signalled a more hawkish monetary policy stance, coupled with US inflation data exceeding expectations.”
Bitcoin and Ethereum lead outflows
Bitcoin bore the brunt of the sell-off, with investors pulling $430 million from BTC-related investment products. Butterfill pointed to Bitcoin’s sensitivity to interest rate expectations as a significant factor in the downturn.
US-based Bitcoin ETFs recorded significant outflows, with Fidelity leading the exodus at $282 million. Ark 21Shares followed with $163 million in withdrawals, while Grayscale saw $140 million exit its funds.
Despite the turbulence, Ethereum proved more stable, registering a comparatively smaller outflow of $7.2 million. However, ETH has continued to attract strong investor interest, securing $785 million in net inflows this month.
Overall, the US market accounted for $464 million in outflows. However, some European markets remained resilient. Germany, Switzerland, and Canada reported inflows of $21 million, $12.5 million, and $10.2 million, respectively.
Solana and XRP attract interest
While Bitcoin and Ethereum have struggled, Solana gained momentum, pulling in $8.9 million in new investments.
The surge is likely tied to growing anticipation around Solana-based ETFs, with multiple issuers — including Canary Capital, VanEck, 21Shares, and Bitwise — seeking regulatory approval from the US Securities and Exchange Commission (SEC).
XRP also performed well, drawing $8.5 million in fresh capital. The token continues to gain momentum amid speculations of an XRP ETF, which has resulted in year-to-date inflows of $161 million.
Other blockchain assets saw positive activity as well. The Sui network recorded $6 million in inflows, while blockchain equities attracted $20.8 million, bringing total inflows for the year to $220 million.
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