Investment activity in crypto funds slowed sharply for the week ending Sept. 6, with total outflows reaching $352 million despite US economic indicators pointing toward conditions that usually encourage risk-taking, according to CoinShares‘ latest report.
James Butterfill, head of research at CoinShares, said weaker employment numbers and growing expectations for a Federal Reserve rate cut in September should have acted as tailwinds.
Instead, they coincided with a 27% drop in weekly trading volumes, signaling that investors were less willing to commit new capital to digital assets. Despite the downturn, longer-term market sentiment remains positive.
According to CoinShares, year-to-date inflows stand at $35.2 billion on an annualized basis, putting the market 4.2% ahead of last year’s full-year total of $48.5 billion.
Ethereum outflows dominate
While Bitcoin products managed to pull in $524 million last week, the overall market picture was dominated by Ethereum’s struggles.
According to CoinShares, investors removed $912 million from ETH-linked products, extending a pattern of daily withdrawals across multiple issuers for seven consecutive days.
This setback reflects the slowing sentiment surrounding the digital asset, even as its inflows for the year remain robust at $11.2 billion.
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In contrast, other major altcoins, such as XRP and Solana, continued to attract steady interest, showing that institutional investors’ appetite remains large for these products.
During the reporting period, Solana logged $16.1 million in weekly inflows, marking its 21st straight positive week and bringing the year’s total to $1.16 billion. Conversely, XRP-focused funds added $14.7 million in fresh capital, pushing their 2025 inflows to $1.22 billion.
Analysts link this consistent activity to speculation surrounding the eventual approval of spot ETFs tied to both assets. Notably, Bloomberg analysts have assigned an over 90% chance of this happening.
US investors lead market redemption
Across the regions, capital movements varied as US investors led redemptions in the market.
According to CoinShares, the US led global outflows with $440 million, while Sweden and Switzerland posted $13.5 million and $2.7 million in redemptions.
At the same time, Germany topped the inflow chart with $85.1 million, followed by Hong Kong with $8.1 million. Investors in Canada, Brazil, and Australia also added modest contributions of $4.1 million, $3.5 million, and $2.1 million, respectively.