Digital-asset investment products recorded one of their largest outflows of the year, led by Bitcoin withdrawals, as institutions trimmed exposure following mid-October’s market turbulence.
According to CoinShares, global crypto funds saw $513mn in outflows last week, the second-largest aggregate weekly redemption of 2025 in the seven days ending 18 Oct.
Bitcoin products led the retreat with $946mn in withdrawals, while investors added funds to Ether (+$205mn), Solana (+$156mn) and XRP (+$74mn), showing continued appetite for selective altcoin exposure despite broader risk aversion.
Outflows concentrated in the US
CoinShares said the selling was largely US-driven, with funds shedding $621mn in a single week. In contrast, Germany (+$54mn), Switzerland (+$48mn) and Canada (+$42mn) recorded inflows as investors in those markets “bought the dip” following the 10 Oct liquidation event that saw $19.1bn wiped from exchanges such as Binance.
Trading activity remained elevated, with ETP (exchange traded product) volumes near $51bn, almost twice the 2025 weekly average, indicating that leveraged traders actively repositioned during the sell-off.
Bitcoin ETFs extend selling
Fresh data from SoSoValue shows the pullback persisted into the following week.
- US spot Bitcoin ETFs (exchange traded funds) recorded $1.23bn in outflows for the week ending 17 Oct, followed by another $40mn on 20 Oct.
- Ether ETFs also saw redemptions of $146mn on the same day, according to SoSoValue data.
Data from CoinShares and SoSoValue indicate that institutional crypto investment vehicles have seen more than $1bn in cumulative withdrawals since mid-October, marking a shift in sentiment after months of steady inflows.
Regional and provider trends
Among issuers, iShares (BlackRock) and Grayscale led the weekly redemptions, shedding about $524mn and $494mn respectively, according to CoinShares.
Fidelity and Bitwise reported smaller outflows. In Europe, multi-asset funds saw only minor withdrawals (–$29mn), suggesting the de-risking was primarily driven by North American investors taking profits after Bitcoin’s initial modest recovery following the liquidation event.
Market sentiment, outlook
Despite the redemptions, year-to-date flows remain positive at around $48bn, with Bitcoin accounting for nearly 60% of total assets under management, CoinShares data show.
Capital rotation
The recent correction is seen as a liquidity-driven adjustment rather than a loss of institutional confidence, with renewed ETF inflows likely once volatility stabilizes and macro visibility improves.
The data also show a cooling in institutional risk appetite amid a year in which the total crypto market value has nonetheless advanced 14%. While Bitcoin’s ETF outflows weighed on sentiment, inflows into Ether, Solana and XRP point to a temporary capital rotation among digital assets, rather than broad liquidation throughout the asset class.
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