TL;DR
- Market Outflows: Digital asset funds experienced $288 million in weekly outflows, extending a five-week decline and pushing cumulative withdrawals to $4.0 billion.
- Regional Divide: The US drove $347m in digital asset outflows, while Europe and Canada posted $59m in inflows, led by Switzerland, Canada, and Germany.
- Asset Breakdown: Bitcoin lost $215m, Ethereum $36.5m, and multi‑digital asset products $32.5m, while short‑bitcoin products gained $5.5m and select altcoins saw minor inflows.
Digital asset investment products continued their slump last week, posting $288 million in outflows, marking a fifth consecutive weekly decline. The persistent weakness has now pushed cumulative outflows to $4.0 billion, a figure that remains below the $6 billion recorded during the same stretch last year. Trading activity also cooled sharply, with volumes falling to $17 billion, the lowest level since July 2025, and a sign that investor enthusiasm has faded after several weeks of elevated ETP turnover.
Regional Sentiment Splits as US Outflows Dominate
A pronounced regional divide continued to shape flows. The US accounted for $347 million in outflows, underscoring a sustained wave of negative sentiment among domestic investors. In contrast, Europe and Canada collectively attracted $59 million in inflows as buyers outside the US viewed recent price softness as an opportunity. Switzerland led with $19.5 million in inflows, followed by Canada at $16.8 million and Germany at $16.2 million, highlighting a more constructive stance across several non‑US markets.
Bitcoin Weakness Persists Despite Short‑Side Interest
Bitcoin remained the primary driver of the downturn, recording $215 million in outflows as sentiment around the asset continued to deteriorate. Yet the bearish mood also fueled renewed interest in short‑bitcoin products, which saw $5.5 million in inflows, the largest of any individual asset category. The contrasting flows reflected a market increasingly divided between long‑term holders stepping back and tactical traders positioning for further downside.
Ethereum and Multi‑Asset Products See Additional Pressure
Ethereum posted the second‑largest outflows at $36.5 million, extending a trend of cautious positioning across major altcoins. Multi‑asset products also struggled, shedding $32.5 million, while Tron saw $18.9 million in outflows. The breadth of withdrawals suggested that investors were not merely rotating within the sector but were instead reducing exposure across multiple digital asset strategies.
Altcoin Inflows Fail to Offset Broader Declines
A handful of altcoins managed to attract modest inflows, though not enough to counter the broader downturn. XRP brought in $3.5 million, Solana added $3.3 million, and Chainlink gained $1.2 million. Despite these pockets of resilience, the overall picture remained one of subdued demand, with the market still searching for catalysts capable of reversing the multi‑week slide.
