Digital asset investment products shed $360 million last week after Federal Reserve Chairman Jerome Powell signaled hesitation about future interest rate cuts.
Bitcoin ETFs were the hardest hit, with losses of $946 million, while Solana saw record inflows of $421 million.
Chairman Powell’s hawkish stance shakes up markets
The outflow of funds occurred in response to Chairman Powell’s comments that further interest rate cuts in December were not certain. He warned that easing policy too soon could threaten the rise in inflation, while action too late could weigh on economic growth.
Investors viewed his comments as hawkish and undermining hopes for swift monetary easing. These signals led to a withdrawal from digital asset products, particularly in the United States. US investors led the outflow, pulling $439 million from crypto products.
Virtual currency outflow by country. Source: CoinShares Report
While US investors exited, Germany and Switzerland recorded modest inflows of $32 million and $30.8 million, indicating continued confidence in the region. Additionally, the lack of release of key US economic data added to market uncertainty throughout the week.
Bitcoin products recorded the biggest decline, with losses of $946 million in one week. This has made Bitcoin the asset most susceptible to changes in monetary policy.
The timing coincided with a broader risk-off period as market participants reconsidered their expectations for aggressive rate cuts.
Solana bucks trend with record institutional demand
While retreating elsewhere, Solana stood out. Inflows into the blockchain platform totaled $421 million, making it the second-highest weekly total for the same asset.
Crypto outflows by asset. Source: CoinShares
This increase was primarily due to the launch of the newly launched US Solana ETF, which includes Bitwise’s BSOL, which saw record inflows in its first trading week.
SoSoValue reported that the Solana ETF recorded net inflows totaling $200 million for the fourth consecutive day since its launch.
According to the SoSoValue ETF dashboard, since the launch of the Bitwise Solana Staking ETF ($BSOL) and Grayscale Solana ETF ($GSOL) on October 28th and 29th, the $SOL ETF has had four consecutive days of net inflows, totaling $200 million. $BTC and $ETH Spot ETF recorded net funds at the same time… pic.twitter.com/CrKgogePA5
— SoSoValue (@SoSoValueCrypto) November 3, 2025
At the same time, we saw outflows from Bitcoin and Ethereum spot ETFs, reinforcing Solana’s contrarian momentum. This suggests that institutional investors view Solana as an attractive and differentiated asset.
The launch of Solana ETFs, praised for its trading speed and low fees, marks a significant moment for access to the institutional investor network.
Grayscale’s GSOL, which launched on NYSE Arca on October 29, provides direct SOL exposure with potential staking rewards, in line with Solana’s proof-of-stake approach. These features set the Solana ETF apart from traditional Bitcoin products and make it appealing to investors looking for yield.
Year-to-date, Solana has seen $3.3 billion in inflows, confirming its position as one of the fastest-growing digital assets among financial institutions.
Despite continued market-wide headwinds, sustained demand demonstrates confidence in the platform’s technological capabilities and growing ecosystem.
The post Crypto Fund Leaks $360 Million After Powell Speech — Excludes Solana appeared first on BeInCrypto.
