Crypto investment products have seen their first outflows in five weeks, totaling $414 million last week. This shift towards a risk-averse approach was prompted by concerns over rising inflation and increasing tensions in the Middle East.

The capital outflow coincided with changing expectations for the June Federal Open Market Committee (FOMC) meeting in the US, which moved from expectations of rate cuts to potential rate hikes, indicating a stricter macroeconomic environment for risk assets. According to a CoinShares report released on Monday, total assets under management have dropped to $129 billion, levels not experienced since early February and similar to conditions in April 2025 when Trump’s tariffs were first introduced.

Weekly asset flows. Source: CoinShares

This change in investor behavior reflects a notable shift toward caution as macroeconomic worries continue to influence demand for digital assets.

Ether leads among outflows

Ether (ETH) took the lead with $222 million in outflows, bringing its year-to-date flow to a net loss of $273 million, making it the weakest asset tracked. Conversely, Bitcoin (BTC) recorded $194 million in outflows but remains on the positive side for the year with $964 million in net inflows. Additionally, Short-Bitcoin products saw a modest inflow of $4 million, indicating some investors are preparing for potential downturns.

Crypto product flows by assets. Source: CoinShares

With Solana (SOL) following with $12.3 million in outflows, XRP emerged as an exception, drawing in $15.8 million in new capital.

Spot Bitcoin, Ether ETFs encounter outflows

The trend of risk-averse sentiment is evident in crypto exchange-traded funds as well, with spot Bitcoin ETFs ending a four-week inflow streak, posting $296 million in net outflows. Meanwhile, spot Ether ETFs continued their losses, reporting $206.6 million in outflows for the second consecutive week.