Digital asset investment products saw $2 billion exit the market last week in the biggest outflows since February. It was also the third consecutive week of negative flows, which pushed the combined total to $3.2 billion. CoinShares attributed the downturn to ongoing monetary policy uncertainty in addition to selling activity from major crypto whales.
Falling prices have further weighed on the sector, causing the total assets under management in digital-asset ETPs to slide by almost 27% from their early-October peak of $264 billion to $191 billion.
In the latest edition of the Digital Asset Fund Flows Weekly Report, CoinShares reported that Bitcoin was hit hardest by last week’s negative sentiment and recorded $1.38 billion in outflows, while extending its three-week streak and now accounting for 2% of total assets under management (AuM). At the same time, short Bitcoin products attracted $9.1 million in inflows over the past week, which indicates that some traders are positioning for further downside. Zooming out, these ETPs have seen $18.1 million in new inflows over the past three weeks.
Ethereum performed even worse and witnessed $689 million in outflows, equal to 4% of its AuM. Solana and XRP also posted small outflows of $8.3 million and $15.5 million, respectively. On the other hand, Sui, Litecoin, and Cardano saw modest inflows of $6 million, $3.3 million, and $0.4 million.
Multi-asset investment products also drew $31.2 million in new capital. In fact, cautious market conditions pushed investors toward these diversified products, which resulted in $69 million flowing into multi-asset ETPs over the past three weeks.
Negative sentiment hit most regions, and was led overwhelmingly by the US, which recorded $1.97 billion in outflows, or 97% of the global total. Several other markets also saw similar outflows, including Switzerland with $39.9 million, Sweden with $1.3 million, and Hong Kong with $12.3 million. Canada and Australia followed suit with $9.8 million and $1.8 million in outflows.
On the other hand, Germany stood out as the only major region to take advantage of the price pullback, while attracting $13.2 million in inflows. Brazil also bucked the trend and registered a more modest $2.4 million in new capital.
Despite the current struggles, certain market experts believe that Bitcoin is in the later stages of its correction rather than entering a new downtrend. In a statement to CryptoPotato, Zilliqa’s Interim CEO Alexander Zahnd explained that the market twice rejected levels just below $100,000, which means that forced selling has mostly cleared, and buyers are quietly defending a key support zone.
While it is too early to confirm a bottom, he said the market is stabilising. The exec added that recent bearish sentiment is being driven by ETF outflows, thinner liquidity, and a temporary pause in institutional allocation, none of which indicate a structural shift. Instead, investors are waiting for clearer macro signals after the Fed’s recent pause and US shutdown concerns. He described the overall sentiment as “cautious but constructive.”
Zahnd went on to add,
