TL;DR
- Outflow Streak: Digital asset funds posted $173 million in weekly outflows, extending a four‑week total of $3.74 billion as trading volumes fell sharply to $27 billion.
- Regional Split: The US drove $403 million in redemptions, while Germany, Canada, and Switzerland contributed to $230 million in combined digital asset inflows, highlighting a widening sentiment gap.
- Asset Rotation: Bitcoin and Ethereum led outflows with $133 million and $85.1 million, but XRP, Solana, and Chainlink attracted inflows, signaling selective resilience despite broader market weakness.
Digital asset investment products extended their retrenchment last week, marking a fourth consecutive week of outflows that reached $173 million and pushed the cumulative four‑week total to $3.74 billion. The week opened with a brief improvement in sentiment as digital asset inflows hit $575 million. Still, momentum quickly reversed when $853 million exited the market, a shift likely tied to continued price weakness.
A modest rebound emerged on Friday following weaker-than-expected CPI data, which helped generate $105 million in inflows. Trading activity also cooled sharply, with ETP volumes falling to $27 billion from the prior week’s record $63bn, underscoring fading speculative appetite.
Regional Divergence Widens as US Digital Asset Outflows Dominate
Regional flow data highlighted a widening gap between US investors and the rest of the world. The United States accounted for $403 million in outflows, reinforcing a pattern of domestic risk reduction that has persisted throughout the month. In contrast, all other regions collectively posted $230 million in inflows, suggesting overseas demand remains comparatively resilient. Germany led with $115 million, followed by Canada at $46.3 million and Switzerland at $36.8 million. The divergence indicates that while global sentiment has softened, non‑US markets continue to selectively accumulate exposure.
Bitcoin and Ethereum Lead Redemptions
Bitcoin investment products absorbed the largest share of redemptions, with $133 million in outflows reflecting the weakest sentiment among major assets. Notably, short Bitcoin products also saw outflows, totaling $15.4 million over the past two weeks, a pattern CoinShares often associates with market troughs. Ethereum followed with $85.1 million in outflows, extending a multi-week trend of reduced exposure. Smaller products were not spared, with Hyperliquid shedding $1 million during the same period.
Selective Altcoins Show Resilience
Despite broad caution, several altcoins continued to attract capital. XRP led with $33.4 million in inflows, while Solana drew $31 million and Chainlink added $1.1 million. These pockets of strength suggest investors are still willing to rotate into assets perceived as having stronger near‑term narratives. The broader backdrop remained subdued, with Bitcoin slipping nearly 2% over the week and staying below $70,000, while Ether held under $2,000 after two weeks of heavy cumulative outflows.
