CoinShares Logs $513M Weekly Outflows as Investors Rotate Into ETH, SOL, XRP
Maya Fernandez
October 21, 2025
“Investors are not abandoning crypto—they’re rotating toward assets with near-term catalysts,” said CoinShares head of research James Butterfill.
Headline Numbers
CoinShares recorded $513 million in net outflows from crypto exchange-traded products for the week ending October 18, reversing the prior week’s inflows. The lion’s share came from U.S.-listed funds, reflecting both continued profit-taking after bitcoin’s rally and risk trimming ahead of key macro data. The outflow tally pushed year-to-date flows back toward parity, though aggregate assets under management remain near $94 billion.
Analysts characterized the headline figure as a “U.S.-centric purge” rather than a broad rejection of digital assets. When stripping out American vehicles, CoinShares said global flows would have been modestly positive.
Regional Flows
European issuers captured $121 million in fresh capital, led by German and Swiss providers marketing diversified baskets. Canadian spot products also turned positive as advisors pitched tax-loss harvesting strategies that rotate proceeds back into crypto exposure. In Asia, flows were flat, with Hong Kong products seeing equal inflows and redemptions as investors weighed regulatory developments.
In the U.S., by contrast, redemptions intensified. Market makers cited end-of-quarter portfolio realignment and continued arbitrage between Grayscale’s GBTC and cheaper spot ETFs. Several issuers confirmed to CryptoMist that they faced multi-day settlement lags because of heavy volumes.
Asset-Level Shifts
Bitcoin products lost $946 million, nearly double the prior week’s outflow, as institutions locked in gains and hedged macro volatility. Ethereum bucked the trend with $205 million of inflows, the strongest showing since July, aided by growing speculation that staking-oriented ETFs will clear regulatory review. Solana funds attracted $156 million, and XRP vehicles absorbed $73.9 million amid optimism that new U.S. applications will advance once Washington reopens.
Multi-asset ETPs were flat, signaling that buyers targeted specific narratives rather than broad beta. Short-bitcoin products saw minor redemptions, suggesting limited appetite for fresh bearish positioning even as price momentum cooled.
Context After the Selloff
The report arrives ten days after the Oct. 10 deleveraging event that erased billions across derivatives venues. CoinShares noted that many investors used last week’s weakness to rebuild exposure to smart-contract platforms, betting on relative resilience compared with bitcoin. Volatility remains elevated, however, leaving open the possibility of further position squaring if macro shocks continue.
Market strategists view the divergence as a constructive sign for altcoin narratives that had been overshadowed by bitcoin ETF headlines. Still, they caution that funding costs and liquidity remain fragile, requiring disciplined sizing.
What Strategists Watch Now
Heading into the final stretch of October, portfolio managers will monitor whether bitcoin outflows abate as macro anxiety fades. If U.S. spot ETFs stabilize, analysts expect a resumption of balanced flows that keep total ETP assets near record highs. Until then, attention centers on Europe and Canada, where issuers are leaning into marketing campaigns pitching diversification beyond BTC.
CoinShares says it will watch for continued accumulation in Solana and XRP products as investors position for potential approvals in 2026. The firm also highlighted that recent inflows into ETH products may foreshadow renewed staking demand, especially if yields remain above 3% and network upgrades proceed on schedule.