More than $1.2 billion exited spot Bitcoin funds last week, joined by $508 million from Ethereum products, while Solana ETFs drew $137 million in new money, according to data curated by SoSoValue.

The outflows came even as bitcoin rebounded 4.4 % in 24 hours to $106,172 and Ethereum gained 7.2 % to $3,617, recovering part of their losses from the U.S. government shutdown and macro uncertainty. Market observers argue the drawdown in BTC's price reflects position-trimming after one of the strongest inflow streaks since early 2024, rather than outright capitulation.

As CoinDesk previously reported, liquidity indicators such as the SOFR-EFFR spread have tightened sharply from their late-October highs, signaling easing financial conditions. The dollar index’s rally has stalled, and borrowing from the Federal Reserve’s standing repo facility has dropped to zero. Taken together, these factors support renewed risk-taking in financial markets.

Wall Street’s interest in crypto remains intense. BlackRock’s Bitcoin ETF continues to lead inflows for the year, while Fidelity and VanEck have expanded their spot product lines. Yet most of that institutional participation still happens off-chain.

As Annabelle Huang of Altius Labs wrote recently in a CoinDesk op-ed, crypto’s largest investors continue to buy exposure through ETFs rather than directly on-chain, as they are not yet confident that the infrastructure meets Wall Street standards of reliability, keeping the market’s liquidity and transparency potential only partially realized.

In a note to CoinDesk, market maker Enflux wrote the shift reflects a broader evolution in crypto itself, as speculative trading gives way to professional infrastructure and mainstream financial integration. “When the Fed injects, Bitcoin rallies; when yields twitch, it falls,” the firm said. “The dream of decoupling is gone for now, and what’s left of the market will either professionalize or disappear.”