TL;DR
- Outflows: Digital asset funds lost $446m last week, adding to $3.2bn in withdrawals since October, underscoring fragile investor confidence despite $46.3bn year-to-date inflows.
- Regional Trends: The US led with $460m in withdrawals, Switzerland saw $14.2m outflows, while Germany bucked the trend, attracting $35.7m last week.
- Asset Divergence: Bitcoin and Ethereum suffered $443m and $59.5m outflows, but XRP and Solana ETFs gained $70.2m and $7.5m last week.
Investor sentiment in digital asset markets weakened sharply over the Christmas period, as crypto ETPs recorded significant outflows. According to CoinShares’ latest weekly report, $446m exited digital asset funds, marking one of the largest year-end withdrawals in recent memory. The data underscores fragile confidence despite strong year-to-date inflows, highlighting how regional divergences and asset-specific trends are shaping the close of 2025.
Persistent Outflows Challenge Recovery
Digital asset investment products have now seen $3.2bn in outflows since October 10, when a sharp price decline rattled markets. The latest $446m withdrawal reflects investors’ reluctance to re-enter risk positions, even as total year-to-date inflows remain broadly aligned with 2024 at $46.3bn compared to $48.7bn. Assets under management have risen just 10% this year, suggesting that average investors have not realized meaningful gains once flows are factored in. This persistent fragility signals that sentiment has yet to fully recover.
Regional Divergence in Digital Asset Flows
The United States accounted for the bulk of last week’s digital asset outflows, recording $460m in withdrawals. Switzerland also saw minor outflows of $14.2m. In contrast, Germany stood out as the notable exception, attracting $35.7m in inflows. With $248m in total inflows this month, German investors appear to be using recent price weakness as an opportunity to accumulate positions. This regional divergence highlights selective confidence in European markets compared to the broader caution in the US.
XRP and Solana Defy Negative Trend
While Bitcoin and Ethereum continued to suffer, with $443m and $59.5m in outflows respectively, XRP and Solana ETFs bucked the trend. XRP recorded $70.2m in inflows last week, while Solana added $7.5m. Since their mid-October ETF launches in the US, XRP has attracted $1.07bn and Solana $1.34bn in inflows. These figures demonstrate strong investor appetite for alternative assets, contrasting sharply with the sustained withdrawals from the two largest digital assets.
Outlook for 2026
The contrasting digital asset flows suggest that investor sentiment remains highly selective heading into 2026. Bitcoin and Ethereum face continued skepticism, while newer ETFs tied to XRP and Solana are drawing capital despite broader market weakness. Regional inflows in Germany further emphasize that confidence is not uniform, but opportunistic. As the year closes, the $446m outflow underscores the fragility of sentiment, setting a cautious tone for the new year.
