Digital Asset Investment Products See Fourth Consecutive Week of Losses
Despite a slowing rate of capital flight, digital asset investment products experienced outflows totaling $876 million for the fourth consecutive week, according to CoinShares’ latest report.
Market Caution Persists
James Butterfill, head of research at CoinShares, highlighted that investors remain cautious amid the current bearish market conditions. The $876 million outflow contributed to a total of $4.75 billion in outflows over the past month, with year-to-date inflows dropping to $2.6 billion.
Moreover, total assets under management (AUM) saw a decline of $39 billion, reaching $142 billion—the lowest level since mid-November 2024.
Outflows Led by the US
The United States led the outflows, with investors withdrawing approximately $922 million. Interestingly, this trend persisted despite President Donald Trump’s announcement of a Strategic Bitcoin Reserve and Digital Asset Stockpile, emphasizing the significance of crypto in the global financial system.
Notably, institutional investment vehicles such as Fidelity’s FBTC, BlackRock’s IBIT, and Ark21Shares were among the most affected, with outflows exceeding $133 million each.
On the flip side, investors in Switzerland, Canada, and Germany took advantage of the market dip, contributing inflows of $23 million, $47 million, and $13.3 million, respectively.
Altcoins Experience Mixed Reactions
Bitcoin saw the heaviest outflows among digital assets, with $756 million exiting the market. This coincided with a significant price drop, as BTC fell nearly 15% last week, dropping from around $94,318 to as low as $80,085.
Additionally, short-Bitcoin products witnessed outflows of $19.8 million, marking their largest outflow since December 2024.
Other altcoins like Ethereum, Tron, and Aave experienced outflows of $89 million, $32 million, and $2.4 million, respectively. In contrast, Solana, XRP, and Sui attracted inflows of $16.4 million, $5.6 million, and $2.7 million.
Market Turmoil Extends to Blockchain-Related Equity Products
Blockchain-related equity exchange-traded products (ETPs) were not immune to the market downturn, recording $48 million in outflows last week.
