Fed’s hawkish stance triggers outflows, but Solana and XRP shine amid market turbulence.
Investors Retreat Amid Fed Concerns
The cryptocurrency market faced its first significant setback in 2025. CoinShares reported a massive $415 million outflow from digital asset investment products last week. Investors grew wary after Federal Reserve Chair Jerome Powell signaled a more aggressive monetary policy. Higher-than-expected U.S. inflation data further fueled fears, causing a sharp market reaction.
Bitcoin and Ethereum Take a Hit
Bitcoin bore the brunt of the sell-off, with $430 million pulled from BTC-related products. U.S.-based Bitcoin ETFs saw massive withdrawals. Fidelity led with $282 million in outflows, followed by Ark 21Shares with $163 million, and Grayscale at $140 million. Ethereum fared slightly better but still lost $7.2 million. Despite the dip, ETH remains a favorite, with $785 million in net inflows this month.
Solana and XRP Defy the Odds
While the broader market stumbled, Solana and XRP bucked the trend. Solana attracted $8.9 million in fresh investments. The surge stems from growing excitement around Solana-based ETFs, with firms like Canary Capital and VanEck seeking SEC approval. XRP also performed impressively, pulling in $8.5 million. Hype around a potential XRP ETF has driven year-to-date inflows to $161 million.
European Markets Stay Resilient
Despite U.S. outflows totaling $464 million, European investors showed confidence. Germany reported $21 million in inflows, Switzerland added $12.5 million, and Canada brought in $10.2 million. Blockchain equities also remained strong, pulling $20.8 million, raising total inflows this year to $220 million.
Key Takeaway
As the Fed adopts a tougher stance, many investors are pulling back. However, Solana and XRP’s resilience highlights growing optimism around ETF approvals and broader adoption. While Bitcoin and Ethereum face headwinds, niche assets like Solana and XRP continue to attract attention.
