Why Are Crypto Funds Facing Outflows While Altcoins Surge Against the Odds?

Ever wonder why, after pumping $1.5 billion out in just two weeks, crypto exchange-traded products (ETPs) saw their assets under management slip all the way down to $207.5 billion — the lowest since mid-July? It’s like watching a blockbuster series where the hero’s losing steam but some side characters are surprisingly stealing the spotlight. While Bitcoin and Ether funds faced a barrage of red flags and outflows, some altcoins like Solana and XRP didn’t just hold their ground—they actually thrived in the chaos. So, what’s really shaking up the crypto landscape right now? Let’s dig into the forces that are stirring the pot and see which digital assets are defying gravity when the market’s showing signs of a cold snap. LEARN MORE.

After two consecutive weeks of outflows totaling $1.5 billion, assets under management in crypto ETPs fell to $207.5 billion, the lowest level since mid-July.

Crypto funds post second week of outflows as altcoins buck the trend

COINTELEGRAPH IN YOUR SOCIAL FEED

Cryptocurrency investment products faced heightened selling pressure last week as crypto funds recorded a second consecutive week of outflows amid ongoing negative sentiment in the markets.

Crypto exchange-traded products (ETPs) saw $1.17 billion in outflows last week, up around 70% from $360 million recorded the previous week, CoinShares reported Monday.

CoinShares’ head of research, James Butterfill, attributed the sell-off to the ongoing negative crypto market trend following the Oct. 10 flash crash, along with uncertainty over a potential US interest rate cut in December.

ETP trading volumes stayed elevated at $43 billion for the week, Butterfill said, noting a brief recovery on Thursday amid optimism over the US government shutdown. However, renewed outflows returned on Friday as those hopes faded, he added.

Bitcoin outflows persist, Ether fails to hold ground

Mirroring the prior week, Bitcoin (BTC) ETPs led the outflows last week with $932 million, slightly down from $946 million the week before.

Ether (ETH) funds were unable to resist the negative momentum, posting $438 million in outflows after recording $57 million in inflows the previous week.

*Crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares*

Short Bitcoin ETPs followed the negative trend, posting $11.8 million of inflows last week. “This coupled with similar inflows a couple of weeks ago mark the highest weekly since May 2025,” CoinShares’ Butterfill noted.

Solana, XRP defy the trend

Several altcoins remained resilient to the crypto ETP sell-off, led by Solana (SOL) with $118 million of inflows last week. Over the past nine weeks, inflows in SOL ETPs totaled $2.1 billion, Butterfill observed.

Other altcoins like XRP (XRP), Hedera (HBAR) and Hyperliquid (HYPE) also posted inflows, netting $28 million, $27 million and $4.2 million, respectively.

After two consecutive weeks of outflows totaling $1.5 billion, assets under management in crypto ETPs fell to $207.5 billion, the lowest level since mid-July. AUM had peaked in early October at over $254 billion.

Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise: Hunter Horsley