Crypto Fund Outflows Hit Week 3 — Biggest Red Flag of 2025?
Key Takeaways
- Crypto investment products saw $2 billion in outflows, the worst weekly total in three weeks.
- Bitcoin and Ethereum ETPs took the biggest hit, accounting for more than $2 billion in combined exits.
- The U.S. drove 97% of the outflows, underscoring weakening institutional sentiment.
For the third straight week, çrypto investment products have been hit with heavy redemptions, this time totaling nearly $2 billion, one of the largest weekly outflows on record.
It marks another bruising chapter in the post-October sell-off, as investors retreat from risk amid rate-cut uncertainty, thinning liquidity, and renewed crypto-whale selling.
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Bitcoin and Ethereum Funds Take the Hardest Hit
The exodus was led by flagship products:
Investors also rotated into multi-asset funds and expanded short-Bitcoin exposure, signaling a shift toward hedging rather than accumulation.
The past three weeks of withdrawals now total $3.2 billion, wiping out nearly all inflows from early Q3. Assets under management have plunged from $264 billion in early October to $191 billion, a steep 27% drawdown.
The United States drove the mass exit, accounting for 97% of all outflows—about $1.97 billion.
Switzerland and Hong Kong followed distantly with $39.9 million and $12.3 million, respectively.
Investors Are Pulling Back—Even With Positive Headlines
Despite the U.S. government reopening and a flurry of crypto-friendly regulatory movements, including ETF progress and staking clarity, sentiment has not recovered.
Large institutions, crypto whales, and retail traders have continued to unwind Bitcoin (BTC) and Ethereum (ETH) positions.
The sustained selling pressure has dragged most 2025 portfolios into the red, erasing the optimism that fueled the mid-year rally.
Part of the shift reflects where we are in the cycle.
Historically, the crypto bull market cools 12–18 months after a halving, and many investors now see late-2025 as the beginning of that late-cycle exhaustion.
Will Outflows Continue?
Whether this downturn deepens or stabilizes will depend heavily on external macro forces:
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The Federal Reserve’s rate-cut timing
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Institutional inflows or lack thereof
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Investor confidence heading into year-end
Unless catalysts emerge, analysts warn that both ETPs and spot crypto markets may continue to face sustained pressure as the market drifts toward its next bear phase.
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