US Bitcoin ETFs suffered a massive exodus of capital last week. Institutional investors turned their backs after Jerome Powell dashed hopes of a rate cut in December. Against the trend, Solana ETFs are doing well with record inflows.
In brief
- US Bitcoin ETFs saw $946 million in net outflows, with the iShares Bitcoin Trust alone losing $400 million.
- Jerome Powell's restrictive tone regarding a rate cut in December cooled the enthusiasm of institutional investors.
- Solana ETFs captured $421 million in one week, driven by the craze for new American funds.
- Crypto markets suffered a correction on Monday with over $1 billion in contract liquidations.
A hemorrhage of capital on Bitcoin ETFs
Bitcoin exchange-traded funds have had a rough week. According to asset manager CoinShares, $946 million flowed from eleven US spot Bitcoin ETFs.
BlackRock's flagship product, the iShares Bitcoin Trust, suffered the heaviest loss with 400 million dollars in withdrawals. In total, all products indexed to digital assets show $360 million in net outflows.
Investors interpreted Jerome Powell's recent statements as a warning signal. The chairman of the Federal Reserve has in fact cast doubt on a possible rate cut in December.
“ This restrictive tone, combined with the notable absence of releases of key US economic data, appears to have plunged investors into uncertainty. “, explains James Butterfill, director of research at CoinShares.
This paralysis of economic data is the result of the American government shutdown, which has now lasted for more than 33 days. Investors therefore navigate by sight, deprived of the usual indicators that guide their decisions. This situation creates a climate of uncertainty that is particularly unfavorable for risky assets like Bitcoin.
The debacle of American ETFs, however, contrasts with the performance of European funds. Germany and Switzerland saw more than $30 million in net inflows.
Canada and Australia attracted $8.5 million and $7.2 million, respectively. A geographical diversification which testifies to the still intact interest in digital gold, despite the American turbulence.
Solana emerges as the alternative during the storm
As Bitcoin weathers the storm, Solana becomes the darling of investors. SOL-based ETFs sucked up $421 million in one week. This spectacular performance can be explained by the recent launch of American funds at the end of October, which sparked real enthusiasm.
The Nasdaq-listed Bitwise Solana ETF (BSOL) already manages $105 million a week after its launch. Its competitor, the Rex-Osprey Solana Staking ETF (SSK), crossed the $100 million mark in twelve days of trading. These figures reflect the growing appetite of institutions for the Solana ecosystem, long considered a serious alternative to Ethereum.
The crypto markets nevertheless had a gloomy Monday. More than $1 billion worth of contracts were liquidated, with Bitcoin and Ethereum accounting for $312 million and $303 million, respectively. At the time of writing, bitcoin was trading at $106,663 after a 2.5% decline. Ethereum lost 5.1% to reach $3,657.
A breath of fresh air in sight for 2026
The horizon could brighten in early 2026. The Fed plans to resume its purchases of Treasury bills in the first quarter, ending three years of balance sheet reduction.
This decision, although technical, could stabilize financial markets and restore oxygen to digital assets. Analysts anticipate around $35 billion in monthly purchases, enough to maintain liquidity in the system.
For now, crypto investors must contend with an uncertain macroeconomic environment. The Fed's caution, coupled with the lack of reliable economic data, creates a delicate cocktail.
But the enthusiasm for new financial products like Solana ETFs shows that institutional appetite remains intact. The market is simply waiting for clearer signals from the US central bank.
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