Digital Asset Investment Products Record Heavy Outflows as Market Sentiment Softens

• Institutional investors withdrew heavily, driving the third-largest outflow streak since 2018.
• Bitcoin and Ethereum led redemptions, though late-week inflows signaled tentative stabilization.
• XRP remained the only major asset with strong inflows while most altcoins saw renewed outflows.

Digital asset investment products faced renewed pressure last week as institutions withdrew US$1.94 billion, marking the fourth consecutive week of redemptions and signaling a shift in market positioning ahead of month-end.

The activity pushed total outflows over four weeks to US$4.92 billion, representing 2.9% of industry assets under management. According to CoinShares data, the current run now stands as the third-largest streak of outflows since 2018, exceeded only by episodes in February 2018 and March 2025. Despite the setback, year-to-date inflows for digital asset investment products remain elevated at US$44.4 billion.

Digital Asset Investment Products Show Uneven Flows Across Major Assets

Bitcoin accounted for the largest portion of last week’s movements, recording US$1.27 billion in outflows and contributing to a US$3.28 billion month-to-date decline. Friday displayed the first sign of stabilization after seven consecutive days of redemptions, as Bitcoin funds attracted US$225 million in inflows. Short-Bitcoin products continued to gain traction, adding US$19 million last week and US$40 million over the three weeks, while their assets under management increased by 119% during that period.

Ethereum products experienced similar pressure. Weekly outflows totaled US$589 million, with withdrawals representing 7.3% of assets under management. The asset also registered a modest recovery at the week’s close, adding US$57.5 million in Friday inflows. The uneven activity across these two markets underscored the broader rebalancing trend affecting digital asset investment products.

Altcoin Performance Splits as Solana Declines and XRP Draws Inflows

Solana recorded US$156 million in outflows, reversing part of its earlier strength this year. Multi-asset investment vehicles also saw withdrawals, while Sui posted smaller declines. Market data showed that most altcoin-focused digital asset investment products were affected by the broader reduction in institutional exposure during the week.

XRP was the lone major asset to buck the trend. The token recorded US$89.3 million in inflows for the week and US$351 million month-to-date, marking one of the strongest demand patterns across the sector. Limited inflows also appeared in Litecoin and the broader “Other” category, though these amounts remained minor relative to total withdrawals.

Late-Week Turnaround Suggests Possible Shift in Momentum

A late-week improvement provided the clearest indication that sentiment may be stabilizing. Across all digital asset investment products, Friday saw US$258 million in inflows, marking the end of seven consecutive days of uninterrupted outflows. While not enough to offset the week’s total redemptions, the shift signaled a cautious re-entry by some institutional participants.

Analysts noted that market positioning remains sensitive to liquidity dynamics and short-term macro conditions, but the rebound at the week’s close suggests that investors are monitoring possible catalysts as the month draws to an end.