Crypto investment products registered their first weekly outflows in five weeks, totaling $414 million. CoinShares reports investor caution stems from rising inflation risks and escalating Middle East tensions.

Market expectations for the upcoming Federal Open Market Committee meeting have shifted from rate cuts to hikes. Total assets under management declined to $129 billion.

- Figure 1 -
- Figure 1 -
Chart: Weekly asset flows.

Ether led asset declines with $222 million in outflows, marking its weakest year-to-date performance. Bitcoin recorded $194 million in outflows but maintains positive year-to-date inflows. Spot Bitcoin and Ether exchange-traded funds also posted significant withdrawals, breaking recent inflow streaks.

- Figure 2 -
- Figure 2 -
Chart: Crypto product flows by assets.

XRP remained an outlier, attracting $15.8 million in fresh capital amidst the broader pullback.