Digital asset products see $2 billion in outflows as 3-week rout drains $3.2 billion

Digital asset investment products suffered their biggest weekly outflows since February, with $2 billion leaving the market last week.

The selloff marked the third straight week of withdrawals, bringing total outflows over the period to $3.2 billion, according to a report released Monday by CoinShares.

The decline follows sharp price declines in major cryptocurrencies, which pushed total assets under management in digital asset ETPs down 27% from their peak of $264 billion in early October to $191 billion.

Whale Selling and Fed Uncertainty Blamed for Crypto Market Fall

Analysts cited continued monetary policy uncertainty and aggressive selling by crypto-native whale wallets as the main drivers of the slowdown.

The United States accounted for the largest share of capital outflows, with $1.97 billion flowing out of U.S.-based products.

Switzerland and Hong Kong followed a distant second, recording $39.9 million and $12.3 million in outflows.

Germany emerged as the lone bright spot, attracting $13.2 million in inflows as local investors viewed the correction as a buying opportunity.

Bitcoin products saw the largest drawdowns, losing $1.38 billion last week, a three-week loss equivalent to approximately 2% of total Bitcoin ETP assets under management.

Ethereum fares even worse on a proportional basis, with $689 million in outflows representing 4% of its ETP market. Solana and XRP saw more modest declines of $8.3 million and $15.5 million.

Despite widespread risk aversion, multi-asset investment products attracted $69 million in inflows over the past three weeks as investors sought diversification.

Short-term Bitcoin ETPs also saw renewed interest as traders positioned themselves defensively amid the ongoing correction.

US Bitcoin ETFs See Weekly Outflows of $1.1 Billion

Meanwhile, U.S. spot Bitcoin ETFs posted their third straight week of losses as investors withdrew $1.1 billion from the products, the fourth-largest weekly outflow on record.

The withdrawals coincided with a sharp market correction, with Bitcoin falling almost 10% to around $95,740, raising fears of a slowdown in one of the asset’s most powerful institutional demand drivers.

According to Matrixport, the slowdown reflects weakening market dynamics, declining ETF flows and reduced exposure for long-term holders, all taking place in an environment without immediate macroeconomic catalysts.

The company described the situation as the start of a “mini bear market,” adding that Bitcoin’s next major move will likely depend on the Federal Reserve’s next policy decisions.

While the Bitcoin and Ether ETFs struggled, the Solana spot ETFs continued to attract capital, seeing $12 million in inflows on Friday and extending their streak to 13 consecutive days since their October 29 launch.

Despite the divergence in ETF flows, Solana still fell 15% during the week, while Ether fell 11%, highlighting widespread weakness in crypto markets.

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