bitcoin Exchange-traded funds (ETFs) just posted their third-largest weekly outflow on record, even as Wall Street deepens its crypto bets.
More than $1.2 billion came out of Bitcoin spot funds last week, followed by $508 million in Ethereum products, while Solana ETFs attracted $137 million in new money, according to data curated by SoSoValue.
The outflows came even as bitcoin rallied 4.4% in 24 hours to $106,172 and Ethereum gained 7.2% to $3,617, recouping some of its losses from the U.S. government shutdown and macroeconomic uncertainty.
Market watchers argue that the BTC price drop reflects a trimming of positions after one of the strongest runs of inflows since early 2024, rather than an outright capitulation.
As CoinDesk previously reported, liquidity indicators such as the SOFR-EFFR spread have tightened sharply from their late-October highs, indicating an easing of financial conditions. The rally in the dollar index has stalled and borrowing from the Federal Reserve’s permanent repurchase facility has fallen to zero. Together, these factors support renewed risk-taking in financial markets.
Wall Street takes over from Degens
Wall Street’s interest in cryptocurrencies remains intense. BlackRock’s Bitcoin ETF continues to lead inflows for the year, while Fidelity and VanEck have expanded their spot product lines. However, most of that institutional involvement still occurs off-chain.
As Altius Labs’ Annabelle Huang recently wrote in a CoinDesk op-ed, larger cryptocurrency investors continue to buy exposure through ETFs rather than directly on-chain, as they are not yet sure the infrastructure meets Wall Street’s reliability standards, keeping the market’s potential for liquidity and transparency only partially realized.
In a note to CoinDesk, market maker Enflux wrote that the change reflects a broader evolution in cryptocurrencies themselves, as speculative trading gives way to professional infrastructure and mainstream financial integration.
“When the Federal Reserve injects, Bitcoin recovers; when yields change, it falls,” the company said. “The dream of decoupling is gone for now and what’s left of the market will professionalize or disappear.”
