Finance

Bitcoin and Ethereum Funds Bleed $1.17 Billion as Solana and Altcoins Surge: What’s Driving the Crypto Market Divergence?

Bitcoin and Ethereum ETPs saw $1.17B outflows last week amid rate cut concerns, but Solana gained.

November 10, 2025, 11:36 AM

A close-up stack of physical Bitcoin, Ethereum, and Litecoin cryptocurrency coins.

Physical tokens of Bitcoin, Ethereum, and Litecoin are shown stacked on a dark surface. By Marc Bruxelle / Shutterstock.com.

Executive Summary

Bitcoin and Ethereum ETPs globally saw over $1.17 billion in outflows last week, primarily due to market uncertainty and reduced expectations for a Federal Reserve interest rate cut.

Major funds from BlackRock and Fidelity experienced significant withdrawals, with U.S. exchanges accounting for $1.2 billion in selling, contrasting with inflows in European markets.

Solana and other altcoin funds bucked the trend, recording substantial inflows, with Solana extending a nine-week streak and new ETFs for Solana and HBAR attracting significant capital.

The Story So Far

The significant outflows from Bitcoin and Ethereum exchange-traded products are primarily driven by diminished expectations for a Federal Reserve interest rate cut, which historically boosts investment in riskier assets, compounded by general market volatility. This bearish sentiment, largely originating from U.S. markets, contrasts sharply with strong inflows into Solana and other altcoin funds, indicating a divergence in investor confidence towards alternative digital assets.

Why This Matters

The significant outflows from Bitcoin and Ethereum ETPs, primarily driven by dimming expectations for a Federal Reserve interest rate cut, highlight the strong influence of macroeconomic factors on investor appetite for major cryptocurrencies. This shift in sentiment is contrasted by robust inflows into altcoins like Solana, suggesting a potential reallocation of capital within the digital asset market as investors seek diversification or alternative growth opportunities. The divergent regional ETP activity also points to varying market confidence and investment strategies globally.

Who Thinks What?

Investors, particularly those on U.S. exchanges, are withdrawing over $1.17 billion from Bitcoin and Ethereum exchange-traded products (ETPs), driven by market uncertainty and diminished expectations for a Federal Reserve interest rate cut.

Investors are showing strong positive momentum in altcoin funds, with Solana, HBAR, and Hyperliquid ETPs attracting substantial inflows and defying the trend of major crypto outflows.

European markets, specifically Germany and Switzerland, are demonstrating resilience with positive inflows into ETPs, contrasting with the significant selling observed in U.S. exchanges.

Bitcoin and Ethereum exchange-traded products (ETPs) globally saw over $1.17 billion in outflows last week, primarily driven by market uncertainty and diminished expectations for a Federal Reserve interest rate cut. Major funds from BlackRock and Fidelity bore the brunt of these withdrawals, while Solana and other altcoin funds bucked the trend with substantial inflows, according to a new report from digital asset manager CoinShares.

Major Outflows from BTC and ETH Funds

The report highlighted significant withdrawals from prominent funds, with BlackRock’s iShares Bitcoin and Ethereum funds shedding a combined $876 million. The Fidelity Wise Original Bitcoin Fund also experienced considerable outflows, accounting for an additional $438 million during the same period.

This negative sentiment pervaded the markets, stemming from ongoing volatility, including an October 10 flash crash. Furthermore, growing uncertainty surrounding a potential December rate cut by the Federal Open Market Committee (FOMC) contributed to the bearish outlook.

Futures trading now indicates a 64.6% chance that the FOMC will lower rates by 25 basis points in December, a notable decrease from the 91.7% probability estimated just a month prior. Historically, Federal Reserve rate cuts tend to stimulate capital flow into riskier assets like cryptocurrencies, making this shift a bearish signal for traders.

Regional Disparities and Trading Volume

The CoinShares report also noted a stark contrast in ETP activity between different regions. U.S. exchanges recorded $1.2 billion in selling, indicating the primary source of negative sentiment. Conversely, European markets showed resilience, with Germany and Switzerland registering inflows of $41.3 million and $49.7 million, respectively.

Despite the outflows, ETP trading volumes remained elevated at $43 billion for the week. CoinShares Head of Research James Butterfill observed that “flows on an intraday basis briefly recovered on Thursday as optimism grew that progress was being made towards resolving the U.S. government shutdown, but this proved short-lived, with renewed outflows emerging on Friday as those hopes faded.”

Solana and Altcoins Defy Trend

In contrast to Bitcoin and Ethereum, altcoin funds demonstrated robust positive momentum. Solana funds recorded $118 million in inflows last week, extending a nine-week streak that has seen $2.1 billion in total inflows. Other altcoins like HBAR and Hyperliquid also attracted capital, with inflows of $26.8 million and $4.2 million, respectively.

The Bitwise Solana Staking ETF (BSOL), which debuted on October 28, has accumulated over $545 million in net inflows, including $223 million in seed investments, since its launch. This strong demand for BSOL, alongside Canary Capital’s HBAR ETF (HBR ticker) attracting nearly $69 million since its October 27 debut, signals sustained interest in alternative digital assets.

Market Outlook

The cryptocurrency market is currently experiencing a divergence, with significant capital flowing out of established assets like Bitcoin and Ethereum amidst