Digital Asset Investment Products Experience First Significant Outflows in 2025
Recent data from CoinShares indicates a shift in investor sentiment towards digital asset investment products, with a notable $415 million outflow recorded last week. This marks a stark contrast to the consistent inflows seen since the US elections in November 2024.
Key Highlights:
- Investors withdrew $415 million from digital asset products last week.
- Over the past 19 weeks, these products attracted $24.9 billion, surpassing the $16 billion inflow seen following the launch of spot Bitcoin ETFs in January 2024.
- Concerns over potential hawkish US monetary policies and higher-than-expected inflation data were cited as reasons for the recent outflows.
Bitcoin and Ethereum Lead the Outflows
Bitcoin saw a significant sell-off, with investors pulling $430 million from BTC-related products. The sensitivity of Bitcoin to interest rate expectations was identified as a major contributing factor to the downturn.
US-based Bitcoin ETFs experienced substantial outflows, with Fidelity leading the pack at $282 million, followed by Ark 21Shares with $163 million and Grayscale with $140 million exiting its funds.
On the other hand, Ethereum exhibited relative stability, with a smaller outflow of $7.2 million. Despite this, ETH continued to attract strong investor interest, with $785 million in net inflows for the month.
Regional Insights:
- The US market accounted for $464 million in outflows.
- European markets like Germany, Switzerland, and Canada remained resilient, reporting inflows of $21 million, $12.5 million, and $10.2 million, respectively.
Solana and XRP Gain Momentum
Solana emerged as a standout performer, securing $8.9 million in new investments. The rise in interest can be attributed to the anticipation surrounding Solana-based ETFs, with issuers like Canary Capital, VanEck, 21Shares, and Bitwise seeking regulatory approval from the SEC.
XRP also fared well, attracting $8.5 million in fresh capital. Speculations of an XRP ETF have driven year-to-date inflows for the token to $161 million.
Other Developments:
- The Sui network recorded $6 million in inflows.
- Blockchain equities saw $20.8 million in inflows, bringing the total for the year to $220 million.
References:
Image Source: Blocscale
