Investment products linked to digital assets experienced their fourth consecutive week of outflows, recording $173 million and pushing cumulative losses over four weeks to $3.74 billion. Early in the week, inflows reached $575 million amidst brief optimism, but continued price weakness, which ended up triggering $853 million in outflows soon after.
Sentiment stabilized slightly on Friday following softer CPI data, as these investment vehicles witnessed $105 million of inflows. Trading activity also cooled significantly, and ETP volumes fell to $27 billion, less than half of the record $63 billion seen the week before.
Altcoin Appetite Surges
In the latest edition of the “Digital Asset Fund Flows Weekly Report,” CoinShares revealed Bitcoin continued to lag in terms of sentiment after seeing $133 million pulled from investment products tied to the asset. Short Bitcoin products also moved lower as combined losses reached $15.4 million over the past two weeks, a pattern frequently observed near cyclical lows, according to the asset manager.
Ethereum followed a similar path after seeing $85.1 million withdrawn, while Hyperliquid recorded $1 million in losses. Multi-asset strategies declined as well, with $14 million leaving the category. On the other hand, appetite remained strong for altcoin-focused investment products such as XRP, Solana, and Chainlink, which attracted $33.4 million, $31 million, and $1.1 million, respectively. Litecoin also gained a modest $0.4 million.
Regional sentiment showed a clear divide between the US and international markets. While the US experienced $403 million in outflows, other regions collectively saw $230 million in new capital. Germany led with $115 million, followed by Canada with $46.3 million and Switzerland with $36.8 million. Brazil added $14 million, Australia nearly $10 million, and Sweden $2.8 million during the same period.
Predictable Correction?
Bitcoin has shed almost 50% since its all-time high last October, prompting market analysts to predict the price could drop to as low as $50,000 before any meaningful recovery. Meanwhile, Hedy Wang, fintech veteran and founder of BlockStreet, believes that the current turbulence is a feature of a maturing market rather than a fundamental collapse. In a statement to CryptoPotato, Wang said,
“Unlike earlier speculative bubbles, the current Web3 ecosystem is supported by a more resilient and collaborative community ethos focused on long-term building. Therefore, an analytical view suggests the market is undergoing a natural, albeit volatile, evolutionary phase, with data pointing towards a repeating historical pattern rather than an unprecedented crisis.”
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