Crypto Funds Endure Fourth Week of Outflows, Totaling $173 Million
Crypto exchange-traded products (ETPs) have marked their fourth consecutive week of net outflows, shedding an additional $173 million. This prolonged "bleed" in the digital asset market reflects persistent negative sentiment, primarily fueled by weakness in the U.S. market, even as some altcoins show surprising resilience.
The Continuing Downturn in Crypto ETPs
According to a recent report from CoinShares, global crypto funds experienced negative net flows for the fourth straight week, bringing the cumulative outflows over the past month to a staggering $3.47 billion. This trend is the most significant period of negative net flows since November 2025. While the latest weekly figure of $173 million indicates a slight deceleration in selling pressure, a definitive market reversal remains elusive despite recent improvements in broader market sentiment following weaker-than-expected CPI data. The week notably saw a sharp drop in ETP trading activity, with volumes plummeting from a record $63 billion to $27 billion.
Regional Divides and Asset Performance
A notable regional divergence in investor sentiment characterized the past week. The United States market alone recorded $403 million in outflows, highlighting a cautious approach from American investors. In stark contrast, other global regions collectively registered $230 million in inflows, with Germany, Canada, and Switzerland leading the positive sentiment with substantial inflows of $114.8 million, $46.3 million, and $36.8 million, respectively. Within the asset classes, Bitcoin (BTC) and Ethereum (ETH) ETPs bore the brunt of the negative sentiment. Bitcoin products saw $133 million in outflows, significantly influenced by BlackRock's IBIT experiencing $235 million in outflows. Similarly, Ethereum ETPs recorded $85.1 million in outflows, led by BlackRock ETHA. Interestingly, even short Bitcoin products saw minor outflows, a pattern often observed near market troughs.
Altcoins Chart Their Own Course
Amidst the general market downturn for leading cryptocurrencies, several altcoin-based investment products demonstrated remarkable resilience. XRP-based funds emerged as a leader, attracting $33.4 million in inflows, building on the previous week's positive momentum. Solana (SOL) ETPs followed closely, registering $31 million in inflows—a significant jump from the $8.2 million recorded a week prior. These positive flows into XRP and Solana ETPs suggest a selective confidence among investors in these specific alternative assets, standing out against the broader trend of withdrawals from the crypto market.
