TL;DR
- Digital asset investment products experienced $360 million in outflows after Federal Reserve Chair Jerome Powell signaled uncertainty on future interest rate cuts.
- Bitcoin ETFs were the hardest hit, losing $946 million, while Solana ETFs drew record inflows of $421 million.
- Institutional demand for Solana reached $3.3 billion in 2025, highlighting strong investor interest in differentiated blockchain assets despite broader market caution.
Crypto investment products saw significant withdrawals last week, totaling $360 million, after Federal Reserve Chair Jerome Powell indicated that future interest rate cuts are not guaranteed. Investors interpreted Powell’s comments as cautious, creating headwinds for digital assets, particularly in the United States. Bitcoin-focused products suffered the most, with ETFs losing $946 million, reflecting sensitivity to monetary policy signals and a broader risk-off environment. Market participants also noted that investor sentiment was influenced by geopolitical developments and lingering uncertainty in traditional equities, amplifying outflows from riskier digital assets.
Powell’s Hawkish Comments Shake Investor Confidence
Powell’s remarks emphasized the need to avoid easing policy too quickly, warning that premature rate cuts could undermine inflation progress. These statements prompted US investors to pull $439 million from crypto products. Meanwhile, Germany and Switzerland recorded inflows of $32 million and $30.8 million, showing that regional confidence in digital assets remains intact despite global market uncertainty. The absence of major US economic data also contributed to cautious sentiment throughout the week, while rising treasury yields further weighed on investor appetite.
Solana Stands Out With Record Institutional Demand
Contrary to the overall trend, Solana attracted $421 million in inflows, marking one of the largest weekly gains for the blockchain. Institutional interest has been fueled by new US Solana ETFs, including Bitwise’s BSOL, which drew significant investment in its first trading week. Data from SoSoValue shows Solana ETFs saw four consecutive days of inflows totaling $200 million after launch, while Bitcoin and Ethereum products continued to experience outflows.
Grayscale’s GSOL, launched on NYSE Arca on October 29, offers direct SOL exposure with potential staking rewards, differentiating it from traditional Bitcoin products. Solana’s proof-of-stake design, transaction speed, and low fees have contributed to its growing institutional appeal. Year-to-date inflows into Solana ETFs have reached $3.3 billion, demonstrating strong confidence in the network’s technology and ecosystem growth, even amid broader market pressure.
The contrast between Bitcoin outflows and Solana inflows highlights a shift in investor focus toward platforms offering both yield potential and scalable infrastructure.
