Digital asset funds experienced $1.94B in weekly outflows. Bitcoin led withdrawals at $1.27B, marking the third largest outflow run since 2018.
Digital asset investment products saw US$1.94 billion of outflows last week. This brought the four-week total to US$4.92 billion. This is the third-largest outflow run since 2018. Bitcoin was a victim of high outflows, which totaled US$1.27 billion. Ethereum has seen outflows of a total of US$589 million.
Digital Asset Funds Face Significant Outflows, Bitcoin Hardest Hit
According to Coinshares Research, Digital asset investment products recorded outflows of US$1.94 billion. This is the fourth week in a row that there have been outflows. The total is now at US$4.92 billion. This accounts for 2.9% of the total assets under management (AuM).
Proportionately, this is the third-largest run of outflows since 2018. It is only surpassed by March 2025 and February 2018. This marks a 36% decline in AuM. This is a combination of the effect of inflows and price. In spite of this, total inflows this year so far are high at US$44.4 billion.
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The last day of trading last week went out to tentative signs. A change of heart took place. Minor inflows of US$258 million were seen. This came after seven days of successive outflows, which would suggest a possible shift.
Most outflows were driven by Bitcoin. This amounted to US$1.27 billion last week. However, it also experienced the biggest bounce back on Friday. This included inflows of US$225 million.
Short Bitcoin is still popular. It saw US$19 million in inflows. It has also had inflows of US$40 million during the past three weeks. This represents 23% of AuM. Its AuM rose an astonishing 119%.
Ethereum experienced outflows of US$589 million. It suffered more during the last week. Outflows represented 7.3% of AuM. It also staged a minor recovery on Friday. This included US$57.5 million inflows.
Solana experienced outflows of US$156 million. However, XRP bucked the trend. It had inflows of US$89.3 million last week. This emphasizes its strength to fight against the overall market sentiment.
Market Uncertainty Drives Withdrawals, US Accounts for 97%
The global market for digital assets saw total outflows. This was nearly $2 billion. This is the most pronounced weekly exit since February 2025. This brings the total of redemptions throughout three weeks to $3.2 billion.
Bitcoin experienced the greatest withdrawals. Outflows totaled $1.38 billion. Ethereum also faced massive outflows. These reached $689 million.
The United States was the major source of outflows. That accounted for 97% of the total at $1.97 billion. Germany, on the other hand, was one of the few regions with inflows. It recorded $13.2 million.
CoinShares Head of Research James Butterfill ascribed the outflows to new uncertainty. This has to do with U.S. money policy. Interest rate expectations were also a factor. This has been putting a heavy weight on the investor sentiment.
Selling pressure by big, crypto-native holders was also a contributing factor. These are often referred to as “whales.” Their actions added to the pressure in the markets.
Despite the massive withdrawals, there is still a significant amount of money flowing into crypto funds on a year-to-date basis. This reflects high underlying long-term interest on the asset class. This implies a resilient core base of investors.