Digital asset investment products have experienced their first substantial outflows in 2025, indicating a shift in investor sentiment.
According to CoinShares, investors withdrew $415 million from these products last week, marking a significant change from the consistent inflows seen since the US elections in November 2024.
The report released on Feb. 17 noted that these products attracted $24.9 billion over the past 19 weeks, surpassing the $16 billion recorded in the first 19 weeks after 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 exceeding 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 saw the most significant sell-off, with investors withdrawing $430 million from BTC-related investment products. Butterfill highlighted Bitcoin’s sensitivity to interest rate expectations as a major factor in the downturn.
US-based Bitcoin ETFs experienced significant outflows, with Fidelity leading the way with $282 million. Ark 21Shares followed with $163 million in withdrawals, while Grayscale saw $140 million leave its funds.
Despite the market turbulence, Ethereum remained relatively stable, with a smaller outflow of $7.2 million. However, ETH continued to attract strong investor interest, garnering $785 million in net inflows this month.
Overall, the US market accounted for $464 million in outflows, but 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 draw attention
While Bitcoin and Ethereum faced challenges, Solana saw an influx of $8.9 million in new investments.
The surge is likely linked to the growing anticipation of Solana-based ETFs, as multiple issuers—including Canary Capital, VanEck, 21Shares, and Bitwise—seek regulatory approval from the US Securities and Exchange Commission (SEC).
XRP also performed well, attracting $8.5 million in fresh capital. The token continues to gain momentum amid speculation of an XRP ETF, resulting in year-to-date inflows of $161 million.
Other blockchain assets also saw positive activity. 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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