Crypto funds lose $1.17 billion after October liquidity shock – except SOL and XRP

Solana and select altcoins appear to have completely ignored the carnage.

Digital asset funds had another tough week as investors withdrew $1.17 billion. This was the second week in a row with a strong outflow. Confidence remains fragile following the October 10 liquidity shock, and macro uncertainty surrounding the Fed’s December policy decision continues to weigh on positioning. CoinShares found that ETP trading volumes, however, remained strong at around $43 billion.

Flows improved on Thursday shortly after headlines suggested there was movement toward averting the U.S. government shutdown. But that brief window of optimism quickly disappeared. On Friday, negative sentiment returned and capital left again as concerns resurfaced and markets priced in continued policy and fiscal uncertainty. Interestingly enough, altcoins have managed to largely defy the trend.

Altcoins flip the script

According to the latest edition of ‘Digital Asset Fund Flows Weekly Report’, institutional capital moved sharply away from Bitcoin last week, when BTC-linked products recorded net outflows of $932 million. However, short Bitcoin ETPs attracted renewed interest, pulling in $11.8 million and marking their highest weekly inflows since May 2025. Ethereum also suffered $438 million in outflows.

But interest in various altcoins remained positive. Solana led again with a significant inflow of $118 million, adding to a massive $2.1 billion built over the past nine weeks. Next up was XRP, which secured $28.2 million in new inflows, followed closely by Hedera with $26.8 million. Hyperliquid listed $4.2 million, and Litecoin managed $1.9 million. Multi-asset funds attracted more than $12 million. On the other hand, Sui and Cardano lost $3.8 million and $0.1 million.

Data continues to show a sharp regional imbalance. The US remains the hardest hit, with an outflow of $1.22 billion. Hong Kong was next with $24.5 million, and Sweden lost $18 million over the same period. Meanwhile, Canada and Australia also reported smaller outflows of $7.6 million and $1.1 million.

Investor interest grew in parts of Europe and Latin America. Germany recorded an inflow of $41.3 million and Switzerland received $49.7 million, while Brazil recorded a new inflow of $12 million this week.

Relief Rally Faces Hard Ceiling

The Senate’s progress on a funding deal boosted risk sentiment, pushing Bitcoin back above $106,000 after several failed breaks below $100,000. QCP Capital noted that this recovery is taking place despite continued outflows from spot ETFs and continued selling by long-term holders. Option flows remain divided as buyers position themselves upward through December 2025, while others sell call options at higher prices.

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The company said the distribution of OG wallets resembles past events such as Silk Road and Mt. Gox, and history shows that markets can absorb such an offer. QCP expects Bitcoin to remain range-bound for now, saying any move above $118,000 will likely lead to more OG selling.