The cryptocurrency fund activity has sharply slowed down: the weekly outflow reached $352 million, with Ethereum net outflows of $912 million leading the way.

According to CoinShares' latest report, investment activity in cryptocurrency funds sharply slowed during the week ending September 6, despite U.S. economic indicators that should have encouraged risk-taking, with total outflows from cryptocurrency funds reaching $352 million. Although Bitcoin products saw inflows of $524 million, Ethereum products experienced net outflows of up to $912 million, becoming the dominant force in the market. Meanwhile, altcoins like XRP and Solana continue to attract steady inflows, indicating that institutional investors remain highly interested in these products.

Market Sentiment and Long-Term Trends

James Butterfill, research director at CoinShares, stated that weak employment data and increasing expectations for a Federal Reserve rate cut in September should have been a tailwind for the market. However, these positive signals coincide with a 27% decline in weekly trading volumes, indicating that investors are less willing to inject new funds into digital assets. Despite a short-term lull, the long-term market sentiment remains optimistic.

According to data from CoinShares, the total inflow year-to-date, annualized, is $35.2 billion, which means this year's market performance is 4.2% higher than last year's total of $48.5 billion.

Fund Flow by Asset Class

Despite Bitcoin products successfully attracting $524 million in inflows last week, the overall market situation is primarily dominated by Ethereum's struggles. According to a report from CoinShares, investors withdrew $912 million from Ethereum-related products, continuing a net outflow pattern for several issuers over the past seven days. This setback reflects a slowdown in sentiment surrounding the digital asset, although its total inflows for the year still remain at a strong level of $11.2 billion.

In contrast, other major alts such as XRP and Solana continue to attract steady inflows of capital, indicating that institutional investors remain highly interested in these products. During the reporting period, Solana recorded weekly inflows of $16.1 million, marking its 21st consecutive week of positive inflows, bringing its total inflows for the year to $1.16 billion. Conversely, funds focused on XRP saw an increase of $14.7 million in new capital, bringing their total inflows for 2025 to $1.22 billion.

Analysts have linked this ongoing activity to speculation in the market that the spot ETFs for these two assets will eventually be approved. Notably, Bloomberg analysts have set the probability of this event occurring at over 90%.

Regional Flow: US Investors Dominate Redemptions

From a regional perspective, the flow of funds varies, with American investors dominating the market's redemptions.

According to CoinShares data, the United States leads the world with an outflow of $440 million, while the redemptions in Sweden and Switzerland are $13.5 million and $2.7 million, respectively.

At the same time, Germany ranked first with an inflow of 85.1 million dollars, followed by Hong Kong with an inflow of 8.1 million dollars. Investors from Canada, Brazil, and Australia also contributed small inflows of 4.1 million dollars, 3.5 million dollars, and 2.1 million dollars, respectively.

Conclusion

This week's cryptocurrency fund flow report presents a complex market picture: on one hand, the overall outflow of funds indicates that investor sentiment is becoming cautious, especially regarding mainstream coins like Ethereum; on the other hand, Bitcoin, Solana, and XRP continue to show unique appeal, attracting sustained institutional funds. This divergence reflects an uneven market confidence and also suggests that investors are selectively allocating based on potential ETF catalysts. Despite the uncertainty in the short term, the strong inflow data year-to-date still indicates that digital assets, as an emerging asset class, have strong growth potential in the long term.