Digital Asset Products See $2B Outflows as 3-Week Rout Drains $3.2B
Digital asset investment products suffered their heaviest weekly outflows since February, with $2 billion exiting the market last week.
Key Takeaways:
- Digital asset products recorded $2 billion in weekly outflows, extending a three-week total to $3.2 billion.
- Analysts blamed the downturn on monetary policy uncertainty and heavy whale selling.
- Bitcoin and Ethereum products saw the largest withdrawals, while multi-asset funds attracted modest inflows.
The sell-off marked the third consecutive week of withdrawals, bringing total outflows over the period to $3.2 billion, according to a Monday report from CoinShares.
The slump follows sharp price declines across major cryptocurrencies, which have pushed total assets under management in digital asset ETPs down 27% from their early-October peak of $264 billion to $191 billion.
Whale Selling and Fed Uncertainty Blamed for Crypto Market Slide
Analysts cited ongoing monetary policy uncertainty and aggressive selling from crypto-native whale wallets as the main drivers behind the downturn.
The US accounted for the overwhelming share of outflows, with $1.97 billion leaving U.S.-based products.
Switzerland and Hong Kong followed at a distance, recording $39.9 million and $12.3 million in outflows.
Germany stood out as the lone bright spot, attracting $13.2 million in inflows as local investors treated the correction as a buying opportunity.
Bitcoin products saw the largest withdrawals, shedding $1.38 billion last week, a three-week bleed equal to roughly 2% of total Bitcoin ETP assets under management.
Ethereum fared even worse on a proportional basis, with $689 million in outflows representing 4% of its ETP market. Solana and XRP recorded smaller pullbacks of $8.3 million and $15.5 million.
Despite the broader risk-off sentiment, multi-asset investment products attracted $69 million in inflows over the past three weeks as investors sought diversification.
Short-Bitcoin ETPs also saw renewed interest as traders positioned defensively amid the ongoing correction.
US Bitcoin ETFs See $1.1B Weekly Outflows
Meanwhile, US spot Bitcoin ETFs recorded their third straight week of losses, with investors pulling $1.1 billion from the products, the fourth-largest weekly outflow on record.
The withdrawals coincided with a sharp market correction, as Bitcoin slid nearly 10% to around $95,740, raising concerns that one of the asset’s strongest institutional demand engines is slowing.
According to Matrixport, the downturn reflects weakening market momentum, fading ETF inflows, and reduced exposure from long-term holders, all unfolding in an environment with no immediate macro catalysts.
The firm described the situation as the beginning of a “mini bear market,” adding that Bitcoin’s next major move will likely depend on upcoming Federal Reserve policy decisions.
While Bitcoin and Ether ETFs struggled, spot Solana ETFs continued to attract capital, posting $12 million in inflows on Friday and extending their streak to 13 consecutive days since launching on Oct. 29.
Despite the divergence in ETF flows, Solana still fell 15% over the week, while Ether dropped 11%, underscoring broad weakness across crypto markets.
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