Crypto investment products saw $952 million in weekly outflows, ending a four-week inflow streak, with outflows concentrated in the US as Canada and Germany posted inflows. Ethereum and Bitcoin led to redemption, but Solana and XRP continued to attract fresh capital.
CoinShares noted that the pullback came as the US Clarity Act faced delays, fueling regulatory uncertainty and concerns that whales might be selling. Hopes that crypto exchange-traded products would beat last year’s inflows have likely been dashed, and total assets under management have fallen to about $46.7 billion from $48.7 billion at the end of 2024.
Most outflows came from the United States, at about $990 million for the week, while Canada and Germany posted inflows of $46.2 million and $15.6 million respectively, suggesting investors outside the US remain cautiously constructive. Investors outside the US were not able to offset the big US sell-off, underscoring how US policy news continues to drive global crypto investments.
Ethereum was the week’s biggest mover, shedding about $555 million, reflecting Ether’s sensitivity to Clarity Act developments around staking. Yet Ethereum remains a bright spot for 2025, with roughly $12.7 billion flowing into Ethereum products this year, more than double last year’s $5.3 billion.
Bitcoin also posted sizable outflows, around $460 million, with year-to-date inflows totaling about $27.2 billion, well below 2024’s $41.6 billion. This implies lingering demand moderation amid regulatory uncertainty.
Solana and XRP buck the trend, with Solana adding about $48.5 million and XRP roughly $62.9 million this week. This signals appetite for altcoins with growth potential and regulatory prospects outside the US.
Regulatory clarity remains the key catalyst. With the Clarity Act delayed and unlikely to pass this year, regulatory uncertainty will keep US crypto products under pressure. If lawmakers provide clear guidelines on tokens and staking, flows could rebound; otherwise inflows may stay below last year’s highs.
Without any clear rules on tokens and staking, big investors may stay cautious, as much as possible, even if the networks themselves are doing well. Right now, the picture is a blur as the US investors are pulled back, especially from Ethereum, but year-to-date inflows are still going strong and some of the altcoins like Solana and XRP continue to attract money.
If the lawmakers quickly provide a clear guideline on crypto investments, the flows will pick up again. Otherwise, inflows may stay below last year’s record.
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