Crypto outflows totaled $876 million last week, completing a successive streak of negative flows in the previous four weeks.

This continued sell-off has resulted in cumulative outflows of $4.75 billion over the past month, significantly reducing the year-to-date inflows to $2.6 billion. Resultantly, total assets under management (AuM) have declined by $39 billion from their peak, now standing at $142 billion—the lowest level since mid-November 2024.

Crypto Outflows Reach $876 Million

The latest CoinShares report indicates that US investors primarily drove the outflows, withdrawing $922 million from digital asset investment products. This bearish sentiment in the US contrasted with other regions, where investors saw the recent market pullback as a buying opportunity.

Meanwhile, Bitcoin remained the primary focus of crypto outflows last week. According to the report, investors pulled $756 million from BTC investment products over the past week. Notably, short-Bitcoin products—designed to profit from price declines—also saw outflows of $19.8 million, the largest since December 2024.

This suggests that some investors may be nearing a point of capitulation in their Bitcoin investments, closing their short positions as uncertainty looms.

Notwithstanding, last week’s crypto outflows marked another significant decline following prior weeks of sustained withdrawals. In the first week of March, digital asset investment products saw record-breaking outflows of $2.9 billion. As BeInCrypto reported, this was fueled by weak investor sentiment and heightened market fear.

This had come on the heels of $508 million in outflows the previous week, amid investor caution, and $415 million in withdrawals before that, following the Federal Reserve’s hawkish rhetoric and concerns over inflation.

The Federal Reserve’s stance on monetary policy has shaped investor behavior in recent months. As inflation exceeds expectations, the Fed has signaled that interest rates may remain elevated for an extended period, reducing liquidity in financial markets and weighing on risk assets like crypto.

“We do not need to be in a hurry, and are well positioned to wait for greater clarity,” Fed chair Jerome Powell stated last week.

With four straight weeks of outflows and persistent macroeconomic headwinds, the crypto market remains under pressure. While certain assets like Solana (SOL) and XRP continue to attract inflows, the overall sentiment remains bearish, particularly among US investors.

If market conditions fail to improve, further outflows could follow in the coming weeks, reinforcing the cautious approach among investors.

Bitcoin and Ethereum ETFs Reflect Bearish Sentiment

The negative sentiment extended beyond Bitcoin, affecting blockchain-related equity exchange-traded products (ETPs). CoinShares’ latest report indicates outflows of $48 million during the same period for these financial instruments.

This decline reflects a broader risk-off sentiment, with investors exercising caution across the digital asset sector. It aligns with a recent BeInCrypto report, which showed that Bitcoin ETFs (exchange-traded funds) recorded four weeks of net outflows surpassing $4.5 billion.

Similarly, Ethereum ETFs continued their negative trend, logging a second consecutive week of net outflows. These negative flows come despite anticipation of last week’s White House Crypto Summit. The outflows suggest macroeconomic concerns and strategic market positioning overshadowed the event’s impact.

The general sentiment is that Trump’s tariffs cause the sour sentiment and weaken investor confidence. However, some crypto analysts hold different opinions, ascribing outflows from crypto investment products to hedge funds’ trading strategies.

“…hedge funds don’t care about Bitcoin. They were farming low-risk yield. Now that the trade is dead, they’re pulling liquidity—leaving the market in free fall…This is a classic case of liquidity games. ETFs didn’t just bring in long-term holders—they brought in hedge funds running short-term arbitrage,” crypto analyst Kyle Chassé explained.

This week in crypto, several big news are in the pipeline, capable of influencing the portfolios of respective ecosystem participants.

From key deadlines and network developments to crucial summits and launches, traders and investors have the following headlines to watch.

Next Solana ETF Deadline

The next Solana ETF (exchange-traded fund) approval deadline is tomorrow, March 11. This deadline marks the end of a 240-day review period for some of the initial Solana ETF filings, such as those from VanEck and 21Shares, submitted in mid-2024 and acknowledged by the Securities and Exchange Commission.

For other filings, like Grayscale’s application, the final deadline might be extended to October 2025. However, posts on X (Twitter) and some analyses suggest March 11 as a critical date for an initial or unified SEC response to multiple applications.

Crypto market participants are cautiously optimistic. Prediction market Polymarket estimates a high likelihood (up to 80%) of approval in 2025.

The optimism draws from expectations of a more crypto-friendly regulatory environment under the Trump administration and the leadership of Paul Atkins at the SEC. However, some experts caution that approval might not occur until 2026 due to ongoing regulatory hurdles.

“The greatest Solana win coming from the new Trump Presidency will be our long-awaited ETF in 2025 or 2026. No surprise, the incredible VanEck team will lead the charge here with support from 21Shares and Canary Capital,” said Dan Jablonski, head of growth at news and research firm Syndica.

The SEC has previously labeled Solana (SOL) an unregistered security in lawsuits against exchanges like Coinbase and Binance. For an ETF to be approved as a commodity-based product, the SEC must shift its stance or resolve these legal challenges. A dismissal or softening of these lawsuits could significantly boost approval odds.

AAVE DAO Proposal

The Aave DAO is exploring a proposal to introduce sGHO, a savings product tied to its native stablecoin GHO. This will enhance GHO’s utility and adoption within the decentralized finance (DeFi) ecosystem.

The network’s sGHO is envisioned as a low-risk, yield-bearing savings product built on Aave’s GHO stablecoin. It is a decentralized, over-collateralized, USD-pegged asset launched in 2023. The proposal highlighted by Aave founder Stani Kulechov positions sGHO as a mechanism to provide GHO holders with passive income opportunities while maintaining stability.

“sGHO will introduce a staple on-chain savings rate for Aave users, great entry-product for new users on-chain,” Kulechov explained recently.

It draws inspiration from models like Sky’s sUSDS (formerly MakerDAO), which offers stablecoin holders a savings rate.

Senator Lummis’ Bitcoin Strategy Summit

Senator Cynthia Lummis, a vocal Bitcoin advocate, will co-host the “Bitcoin for America” summit on March 11 in Washington, D.C., organized by the Bitcoin Policy Institute. This invite-only event, which will be streamed online in some parts, aims to shape the US Bitcoin strategy.

Recently, she proposed selling Federal Reserve gold to fund the Bitcoin reserve. In her opinion, the reserve could help tackle the country’s $36 trillion national debt. Key attendees at the summit include industry leaders like Strategy’s Michael Saylor, policymakers, and financial executives, signaling bipartisan momentum for Lummis’ BITCOIN Act.

This legislation proposes a US strategic Bitcoin reserve, targeting 1 million BTC (5% of the total supply) over five years and held for 20 years to bolster the dollar and reduce national debt.

With Trump’s pro-crypto stance and a Republican-led Congress, approval odds are rising, potentially within his first 100 days. For the crypto market, this could mean heightened institutional adoption, price volatility if the US starts buying BTC, and a precedent for other nations.

“Senator Lummis is stirring the pot, suggesting an arms race over Bitcoin instead of weapons. If the U.S. starts hoarding BTC, we’re talking a seismic shift in global dynamics—military power taking a backseat to digital asset dominance,” one user on X noted.

However, regulatory hurdles and Bitcoin’s volatility remain risks. Participants should watch for summit outcomes, as they could redefine Bitcoin’s role in US finance.

Frax Finance Expands Stablecoin to Solana

Frax Finance, known for its fractional-algorithmic stablecoin FRAX, recently announced plans to expand its stablecoin ecosystem to Solana, a high-performance blockchain. This move, teased in early 2025, aims to leverage Solana’s speed, low costs, and growing DeFi ecosystem to boost FRAX adoption.

Crypto market participants should note that FRAX is currently pegged to the USD with a mix of collateral (like USDC) and algorithmic stabilization. It could enhance Solana’s stablecoin liquidity, challenging dominant players like USDT and USDC.

The expansion aligns with Frax’s multi-chain strategy, which spans Ethereum, Polygon, and Avalanche. Solana’s $1 billion+ in native stablecoin issuance and scalability make it a strategic fit.

Therefore, this expansion could bring yield opportunities via Frax’s lending and liquidity pools, though peg stability risks remain.

Movement Mainnet Launch

Movement, an ecosystem of modular Move-based Layer-2 (L2) blockchains, launches its mainnet today, March 10, at 15:00 UTC. It marks a significant milestone as Ethereum’s first Move Virtual Machine (MoveVM) L2.

Built by Movement Labs, this launch promises up to 160,000 transactions per second (TPS). It leverages Move’s secure, Rust-based programming language originally developed for Meta’s Diem.

Its Ethereum compatibility enables seamless settlement and a multi-asset liquidity program to kickstart DeFi adoption.

The MOVE token powers gas fees, staking, and governance. It was launched in December 2024 with a 10% airdrop via MoveDrop. Investors should brace for price volatility around MOVE, trading for $0.46 as of this writing.

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Jeff Park, Head of Alpha Strategies at Bitwise, asserted on Sunday, March 9, that US President Donald Trump will hold off on further Bitcoin purchases until it reaches a price close to $60,000. Park’s remarks, shared via his official account on X, were made against the backdrop of growing speculation around so-called “budget-neutral” methods the administration might use to acquire additional BTC for the recently established US Strategic Bitcoin Reserve.

Why Trump Needs Bitcoin To Drop First

On March 6, 2025, President Trump issued an Executive Order creating the Strategic Bitcoin Reserve, positioning the United States to maintain a leading role in the digital asset space. The administration confirmed that it already controls roughly 200,000 BTC—valued at around $17 billion at current prices—seized primarily through criminal and civil asset forfeiture proceedings – pending an audit. While the Executive Order prohibits selling Bitcoin within the reserve, it directs the Secretaries of the Treasury and Commerce to study “budget-neutral” ways of accumulating additional BTC in the future, ensuring no extra cost to taxpayers.

Jeff Park’s perspective cuts through the standard market commentary, focusing instead on the political realities that, he believes, heavily influence any presidential decision to buy BTC. In one of his posts, Park writes: “I’m going to let you in on a little secret from my primary field experience on how the BTC pitch works… I know one thing better about institutions than almost anyone else: public officials almost never buy bitcoin on trend/momentum and certainly not at the highs. The reason is simple – they don’t want to get fired when the inevitable drawdown hits or worse, ruin their reputation in the public domain.”

He goes on to argue that political figures, especially one as scrutinized as the US President, face an asymmetric risk profile. The fallout from buying at a higher price—only to see the market correct—can be devastating from a public-relations standpoint. Park surmises that the incentives for officials shift dramatically when BTC dips to more attractive levels.

He notes: “Can you imagine the headlines that will come for Trump if he buys bitcoin at $100k and it goes to $70k? On the positive side, if BTC gets to very cheap levels, the incentives for politicians and sovereigns to buy will increase… It is always +EV for the incentive calculation of an executive branch (which must win elections) to wait for BTC to get to $60k and buy and take credit.”

Park stresses that while a strategic reserve might be intended as a long-term store of value, public officials seek to avoid backlash in the event of immediate downside price volatility. This underlying political pressure, he contends, makes them less likely to make “high-risk” moves—especially ones that might expose them to questions about accountability.

The newly formed Strategic Bitcoin Reserve, often branded by the administration as a “digital Fort Knox,” is explicitly designed to remain untouched over the long haul. White House Crypto and AI Czar David Sacks has likened it to “a 21st-century bulwark of national financial security,” underscoring the administration’s ambitions for American cryptocurrency leadership.

However, Park argues that certain conditions must be met for a reserve program to gain genuine traction. Among them are “programmatic buying vs discretionary ‘studies,’” shared decision-making (to distribute accountability), and an element of permanence—either through legislative safeguards or authoritative action undertaken behind closed doors.

Park’s admiration for public pension Chief Investment Officers who have proactively incorporated Bitcoin also highlights the contrast in decision-making timelines: “This is at the core why I give so much RESPECT to the public pension CIOs that have bought BTC or invested in crypto strategies. They are simply true patriots – committed to long-term thinking for the benefit of all against the potential privatized loss of one’s self. Heroes.”

His applause underscores how these executives, unlike politicians seeking reelection or mindful of wide public scrutiny, often have more leeway to invest for the long haul, provided they have fiduciary guardrails in place.

At press time, BTC traded at $82,389.

Featured image created with DALL.E, chart from TradingView.com

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