Crypto funds bleed $1.17b in sustained U.S.-led exodus

Crypto funds witnessed a second straight week of outflows, totaling $1.17 billion, offset by mild inflows from other regions.

The most significant sell-off was in U.S. products, which accounted for $1.22 billion-worth of exits.

On Nov. 10, CoinShares Head of Research James Butterfill reported that the outflows were heavily concentrated in the two largest crypto assets, with Bitcoin (BTC) seeing $932 million redeemed and Ethereum (ETH) facing a $438 million exit.

The report noted that this negative sentiment was compounded by political uncertainty, as a brief intraday rebound on hopes of a U.S. government shutdown resolution was swiftly erased by Friday’s outflows.

Short bets climb, altcoins defy the exodus

Beneath the broad sell-off, nuanced investor strategies emerged. While long Bitcoin products were hammered, short Bitcoin ETPs attracted $11.8 million in inflows. According to Butterfill, this marks the highest weekly inflow for bearish Bitcoin bets since May, indicating a segment of the market is actively positioning for further downside.

This defensive posture, however, was not universal. Altcoins presented a striking counter-narrative. Solana (SOL) continued its remarkable run, pulling in $118 million last week and bringing its nine-week total to a staggering $2.1 billion.

Other assets — Hedera (HBAR) and Hyperliquid (HYPE) — also defied the trend, registering inflows of $26.8 million and $4.2 million, respectively.

European investors displayed a markedly different conviction than the U.S. Germany and Switzerland saw inflows of $41.3 million and $49.7 million, respectively, continuing a pattern of transatlantic divergence.

Compared with the prior week’s $360 million total outflows, when Bitcoin alone shed $946 million, this week’s $1.17 billion bleed confirms that redemptions are deepening rather than dispersing.

The persistence of heavy U.S. selling, combined with contrasting European inflows, paints a picture of two markets responding to the same macro environment through opposite lenses. One remains risk-averse and policy-dependent; the other, quietly opportunistic.