Cryptocurrency investment products faced a sharp reversal last week, recording nearly $360 million in total outflows as investors reacted to the Federal Reserve’s latest policy stance and Chair Jerome Powell’s hawkish tone on future rate cuts.
According to CoinShares, the outflows followed Powell’s statement that a December rate cut is “not a foregone conclusion,” despite the Fed’s decision to reduce rates last Wednesday. The lack of new macroeconomic data — caused by the ongoing U.S. government shutdown — also contributed to a wave of uncertainty across financial markets.
The majority of redemptions came from the U.S., with $439 million withdrawn from American funds. Meanwhile, Germany and Switzerland saw mild inflows that softened the blow. Bitcoin ETFs were hit hardest, seeing $946 million in redemptions.
Still, not every asset suffered. Solana (SOL) once again proved its resilience, drawing $421 million in inflows — its second-largest weekly figure on record. Demand was fueled by strong interest in newly listed Solana ETFs in the U.S., pushing total inflows for 2025 to $3.3 billion.
Ethereum (ETH) also recorded a positive week, attracting $57.6 million, though trading activity suggested investors remain cautious overall.
The shift came after a blockbuster previous week, when crypto investment vehicles accumulated $921 million in inflows, boosted by softer-than-expected inflation data on October 24.
Bitwise’s Solana Staking ETF (BSOL) debuts with major demand
One of the key drivers behind Solana’s surge was the launch of the Bitwise Solana Staking ETF (BSOL), which made its debut last Tuesday with $222.8 million in seed capital — a strong indication of institutional appetite for staking-based exposure.
The fund gives investors direct access to Solana with an estimated 7% annual yield through onchain staking rewards, offering a regulated alternative to self-managed staking.
By Friday, spot Solana ETFs had posted their fourth consecutive day of inflows, adding another $44.48 million.
According to Vincent Liu, Chief Investment Officer at Kronos Research, the trend highlights a growing rotation in crypto markets:
“We’re seeing a shift toward assets that combine yield with scalability potential. Solana’s staking products are leading that narrative as investors take profits from Bitcoin and Ether rallies.”
Despite the ETF-driven optimism, SOL’s price has cooled, trading around $166 — down more than 9% in the past 24 hours and roughly 26% over the last month, based on CoinGecko data.
Still, analysts view the strong institutional inflows as a sign that Solana remains one of the few altcoins commanding serious long-term confidence amid shifting macro conditions.
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