Digital asset funds have experienced a net outflow of $1.17 billion for two consecutive weeks, with altcoins defying the trend and attracting investment, becoming a market highlight.

According to the latest weekly fund flow report released by CoinShares (as of November 7, 2025), digital asset investment products experienced net outflows for the second consecutive week, totaling $1.17 billion. This was mainly influenced by the residual effects of the liquidity crisis in October and uncertainties surrounding U.S. interest rate policies. Bitcoin and Ethereum were the hardest hit, with net outflows of $932 million and $438 million respectively, while altcoins represented by Solana attracted $118 million in inflows, accumulating a total of $2.1 billion over the past nine weeks. This divergence highlights that institutional investors are reassessing the risk-reward profile in the cryptocurrency space.

Regional Divergence in Global Fund Flows

Fund flow data reveal significant regional differences. The U.S. market experienced a net outflow of $1.22 billion in a single week, accounting for 104% of the total global outflows. This concentrated outflow is highly correlated with local regulatory environments and macroeconomic uncertainties. In contrast, the European market demonstrated resilience, with Germany and Switzerland recording net inflows of $41.3 million and $49.7 million respectively, continuing the trend of stable allocations to digital assets among European investors since 2025.

This regional divergence is driven by contrasting policy environments. In the U.S., government shutdowns, frequent SEC enforcement actions, and delayed interest rate decisions have created uncertainty. Meanwhile, Europe’s regulatory clarity has significantly improved following the full implementation of the MiCA regulations, attracting more institutional capital. Data shows that the assets under management (AUM) of European digital asset ETPs grew by 23% in Q3 2025, compared to only 7% in the U.S. during the same period.

Structural Analysis of Bitcoin and Ethereum Outflows

Bitcoin’s net outflow of $932 million, the highest since May 2025, mainly stems from the withdrawal of short-term tactical allocation funds. Further analysis indicates that Bitcoin spot ETFs faced significant redemption pressure, with Grayscale GBTC experiencing a weekly outflow of $450 million and BlackRock’s iBit outflowing $280 million. Meanwhile, shorting Bitcoin products saw inflows of $11.8 million, the largest since May 2025, suggesting some investors are positioning for hedging strategies.

Ethereum’s situation is more complex, with $438 million in outflows, 62% of which occurred in futures ETF products, related to the expiration of Ethereum futures contracts. Notably, despite the net outflows, staking activity within the Ethereum ecosystem continues to grow, with total staked ETH on the Beacon Chain surpassing 40 million ETH, reaching a record high. This divergence between technical fundamentals and capital flows reflects that investor confidence in Ethereum’s long-term prospects remains intact despite short-term outflows.

Continued Strength of Altcoin Leader Solana

Amid overall outflows, Solana’s strong performance remains a market highlight. The weekly inflow of $118 million marked the ninth consecutive week of net inflows, with a total of $2.1 billion accumulated. This sustained attractiveness is primarily driven by three factors: innovative Solana ETF products, significant improvements in network performance, and rapid ecosystem expansion. For example, Bitwise’s Solana Staking ETF (BSOL), which allocates 100% of assets to on-chain staking, offers investors an approximate 5.2% annualized yield, making it highly appealing for yield-focused investors.

Besides Solana, other notable altcoins include HBAR, with inflows of $26.8 million, and Hyperliquid, with inflows of $4.2 million. These projects share common traits of establishing technological advantages in specific verticals—HBAR in enterprise distributed ledger solutions and Hyperliquid in decentralized derivatives trading. This capital flow indicates that institutional investors are shifting from simple beta exposure toward more targeted alpha capture strategies.

Market Sentiment and Future Fund Flow Outlook

Current market sentiment indicators show a coexistence of short-term caution and long-term optimism. The Fear and Greed Index decreased from 45 to 38 but remains in the “fear” zone. Futures funding rates have generally fallen back to neutral levels, indicating reduced leverage speculation. Historically, after two consecutive weeks of significant outflows, a third week often sees a rebound in flows, a pattern validated with a 70% success rate since 2024.

Key drivers for future fund flows will include whether U.S. CPI data supports a dovish Federal Reserve stance, whether Solana ETFs can sustain inflows, and whether Bitcoin can hold the critical technical support at $105,000. Based on options market data, traders expect digital asset fund flows to stabilize over the next month, with the put-call ratio decreasing from 0.85 to 0.72.

Conclusion

Short-term fluctuations in digital asset fund flows have not altered the long-term trend of institutional allocations. Current capital rotations are instead fostering healthy market adjustments and preparing for the next upward phase. While Bitcoin and Ethereum are experiencing technical outflows, the strong performance of altcoins demonstrates that the breadth and depth of the cryptocurrency market continue to expand.