Bitcoin exchange-traded funds (ETFs) just saw their third-largest weekly outflow on record, even as Wall Street deepens its crypto bets.
More than $1.2 billion exited spot Bitcoin funds last week, along with $508 million from Ethereum products, while Solana ETFs drew $137 million in new money, according to data curated by SoSoValue.
The outflow came even as bitcoin rose 4.4% in 24 hours to $106,172 and Ethereum rose 7.2% to $3,617, recouping some of their losses from the US government shutdown and macro uncertainty.
Market observers argue that the decline in BTC’s price reflects position trimming after one of the strongest inflow streaks since early 2024, rather than outright capitulation.
As CoinDesk previously reported, liquidity indicators such as the SOFR-EFFR spread have tightened sharply from their late-October highs, signaling easing financial conditions. The dollar index’s rally has stalled and borrowing from the Federal Reserve’s standing repo facility has fallen to zero. Together, these factors support renewed risk-taking in the financial markets.
Wall Street takes over from the degens
Wall Street’s interest in crypto remains intense. BlackRock’s Bitcoin ETF continues to lead inflows for the year, while Fidelity and VanEck have expanded their spot product lines. Yet most of the institutional participation still happens outside the chain.
As Annabelle Huang of Altius Labs recently wrote in a CoinDesk op-ed, crypto’s biggest investors continue to buy exposure through ETFs rather than directly on-chain because they are not yet confident that the infrastructure meets Wall Street’s standards of reliability, keeping the market’s liquidity and transparency potential only partially realized.
In a note to CoinDesk, market maker Enflux wrote that the shift reflects broader developments in crypto itself, as speculative trading gives way to professional infrastructure and mainstream financial integration.
“When the Fed injects, Bitcoin rises; when yields move, it falls,” the firm said. “The dream of decoupling is gone for now, and what’s left of the market will either professionalize or disappear.”
