Digital asset investment products have faced continued challenges, recording a substantial withdrawal of $173 million over the past week. This marks the fourth consecutive week of outflows, as reported by CoinShares. Cumulatively, these outflows have now reached an alarming $3.74 billion across the preceding month, highlighting a trend of institutional hesitance amidst ongoing price volatility.
The week began on a positive note, showcasing $575 million in inflows. However, the sentiment shifted dramatically as price weaknesses emerged, resulting in $853 million in outflows that wiped out earlier gains. Toward the end of the week, weaker-than-expected Consumer Price Index (CPI) data managed to stabilize outflows, leading to a modest recovery with $105 million in inflows on Friday.
In terms of trading activity, Exchange-Traded Products (ETPs) witnessed a significant decline in volumes, plummeting to $27 billion, down from the previous week”s record of $63 billion. This indicates a cooling in market activity, further emphasizing the cautious posture of investors.
Geographically, the data reveals a stark contrast between the United States and other regions. The U.S. experienced outflows of $403.2 million, while Germany, Canada, and Switzerland collectively attracted $230 million in inflows. This divergence points to differing investor attitudes across regions, with European and Canadian markets demonstrating a greater willingness to accumulate assets during periods of weakness.
Breaking down the outflows by asset class, the leading contributors were Bitcoin at $133.3 million and Ethereum at $85.1 million. Additional outflows were recorded in multi-asset products ($14.6 million) and short Bitcoin products ($5.0 million). Interestingly, short Bitcoin products have seen $15.5 million in outflows over the last two weeks, a trend often associated with market bottoms as bearish positions begin to unwind.
Despite the broader market pressure, certain altcoins managed to attract new investments. XRP led this group with an influx of $33.4 million, followed closely by Solana at $31.0 million and Chainlink with $1.1 million. This selective inflow pattern indicates a potential rotation of capital rather than a complete risk aversion among investors.
The total assets under management across digital asset investment products now approximate $132.96 billion. The current flow dynamics suggest that while macroeconomic uncertainties continue to exert pressure on U.S.-based products, investors in Europe and Canada are more inclined to buy on dips. The coming weeks will likely be influenced by the stability of macro data and whether U.S. inflows can start to align with the more positive trends observed in other regions.
