Crypto investment products extended their losing streak last week, recording $173 million in net outflows, according to the latest weekly report from CoinShares. This marks the fourth straight week of withdrawals, pushing total outflows over the past month to a significant $3.74 billion. The trend highlights ongoing caution among investors as digital asset prices struggle and macroeconomic uncertainty continues to influence market sentiment.
Despite the negative weekly total, the period did not start on a weak note. Crypto funds initially attracted $575 million in inflows, suggesting optimism early in the week. However, that positive momentum quickly faded as markets turned volatile. By midweek, heavy withdrawals totaling $853 million reversed earlier gains, likely triggered by declining crypto prices and investor concerns over broader financial conditions.
Toward the end of the week, there was a small sign of recovery. Weaker-than-expected US Consumer Price Index (CPI) data helped ease inflation fears, encouraging some investors to return. This led to $105 million in inflows on Friday, partially offsetting earlier losses but not enough to prevent a fourth consecutive week of net outflows.
Trading activity also slowed significantly. Exchange-traded product (ETP) volumes dropped to $27 billion, a steep decline compared to the record $63 billion seen the previous week. This sharp reduction suggests investors are taking a more cautious approach and waiting for clearer market signals before making large moves.
US Drives Outflows While Europe and Canada Stay Positive
Regional trends revealed a clear divide in investor behavior. The United States accounted for the majority of withdrawals, with $403 million in outflows. This indicates that US investors are currently more risk-averse, possibly due to economic uncertainty and market volatility.
In contrast, other regions showed continued interest in digital assets. Europe and Canada together recorded $230 million in inflows, signaling stronger confidence outside the US. Germany led the gains with $115 million in inflows, followed by Canada with $46.3 million and Switzerland with $36.8 million. This regional divergence suggests that while some markets are pulling back, others still see value in crypto investments.
Bitcoin and Ethereum See Heavy Selling
Bitcoin experienced the largest withdrawals, with $133 million flowing out of Bitcoin-related investment products last week. Ethereum also faced significant pressure, recording $85.1 million in outflows.
Interestingly, short Bitcoin products — which profit when Bitcoin’s price falls — also saw $15.4 million in outflows over the past two weeks. According to CoinShares, this pattern has historically appeared near potential market bottoms, as investors begin reducing bearish positions.
Altcoins Show Strength Despite Market Weakness
While Bitcoin and Ethereum struggled, several altcoins attracted fresh capital. XRP led the way with $33.4 million in inflows, followed by Solana and Chainlink. This suggests that investors are not completely exiting the crypto market but are instead shifting their focus toward alternative digital assets with perceived growth potential.
Despite recent withdrawals, the total assets under management in crypto investment products remain high. This indicates that institutional interest in digital assets is still intact, even as short-term volatility and uncertainty continue to influence investor decisions.
Overall, the latest data reflects a cautious but evolving market, where investors are becoming more selective rather than abandoning crypto entirely.
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