Crypto Funds Show 5 Weeks of ETF Outflows

What to Know:

• Digital asset investment products saw continued outflows, driven primarily by Bitcoin and Ethereum.
• Macroeconomic and geopolitical uncertainties are weighing on investor sentiment and risk appetite in the crypto market.
• XRP saw minor inflows, but the broader altcoin market remains under pressure.

Digital asset investment products continue to experience outflows, reflecting a cautious sentiment among investors. Bitcoin remains the primary driver of this trend, with significant redemptions. Market participation has thinned, with trading volumes in ETPs (Exchange Traded Products) hitting their lowest levels since July 2025.

Digital Asset Outflows Persist

Digital asset funds experienced $288 million in outflows last week, marking the fifth consecutive week of redemptions. Aggregate withdrawals now total $4 billion, though still less than the $6 billion seen last year. This persistent outflow suggests waning investor appetite, particularly among institutions and retail allocators globally.

Bitcoin and Ethereum Lead Outflows

According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin saw the largest outflows at $215 million. Short-bitcoin funds, however, absorbed $5.5 million, indicating increased bearish sentiment. Ethereum also experienced notable withdrawals of $36.5 million. Multi-asset products and Tron also saw significant selling pressure, with outflows of $32.5 million and $18.9 million, respectively.

Regional Flow Discrepancies

The United States dominated weekly outflows, contributing $347 million. In contrast, investors in Switzerland, Canada, and Germany saw recent price declines as buying opportunities, with inflows of $19.5 million, $16.8 million, and $16.2 million, respectively. Brazil, Australia, and the Netherlands also saw smaller inflows.

XRP and Altcoin Performance

XRP, Solana, and Chainlink recorded minor inflows, ranging from $1.2 million to $3.5 million. However, these gains were insufficient to offset the broader trend of net outflows across most altcoins, indicating continued pressure on the altcoin market.

Bitcoin’s Macro Challenges

Bitcoin briefly dipped below $65,000, triggering approximately $230 million in long liquidations. This move reflects broader market concerns related to geopolitical and macroeconomic risks. Heightened policy uncertainty and renewed concerns about a potential US-Iran conflict are also weighing on investor sentiment. Market participants await upcoming catalysts, including progress on the Clarity Act and US-Iran talks, for potential market recovery.

Conclusion

Digital asset markets are currently facing headwinds, with persistent outflows and thinning participation. Bitcoin and Ethereum are leading the decline, while XRP and other altcoins struggle to gain traction. Macroeconomic and geopolitical uncertainties continue to exert downward pressure on the market, requiring investors to remain cautious.

Related: XRP Flows Into Binance: What it Signals

Source: Original article