Summary
- Digital asset investment products saw weekly outflows of $2 billion, for a three-week total of $3.2 billion, with the US leading the losses.
- Bitcoin and Ethereum products suffered the biggest pullbacks, while multi-asset funds attracted $69 million in inflows as investors sought diversification.
- Analysts point to weak market momentum, declining ETF interest and uncertainty over monetary policy, with the next shift depending on Federal Reserve decisions.
Digital asset investment products recorded $2 billion in outflows last week, marking the heaviest weekly withdrawals since February. according to to industry data. The outflows extended a three-week decline to $3.2 billion, driven by uncertainty over monetary policy and selling pressure from major cryptocurrency holders.
Bitcoin (BTC) and Ethereum (ETH) products saw the biggest drawdowns, while multi-asset funds attracted modest inflows over the period, the data showed.
The withdrawals followed sharp price declines in the major cryptocurrencies, which saw total assets under management in exchange-traded digital assets fall 27% from an early October peak of $264 billion to $191 billion.
The United States accounted for the bulk of the outflow, with $1.97 billion moving out of American products. Switzerland recorded an outflow of $39.9 million and Hong Kong saw $12.3 million leave the market. Germany recorded an inflow of $13.2 million, representing the only major market to attract capital during the period.
Bitcoin products recorded $1.38 billion in withdrawals last week, bringing three-week outflows to around 2% of total Bitcoin ETP assets under management. Ethereum products saw outflows of $689 million, representing 4% of the ETP market. Solana and XRP products recorded smaller withdrawals of $8.3 million and $15.5 million, respectively.
Multi-asset investment products attracted $69 million in inflows over the three-week period as investors sought diversification strategies. Short Bitcoin ETPs also saw increased interest as traders took defensive positions during the market correction.
US spot Bitcoin ETFs posted their third straight week of losses, with net outflows of $1.1 billion representing the fourth-largest weekly drawdown on record. The outflow coincided with a nearly 10% drop in Bitcoin prices, raising questions about institutional demand for the products.
According to Matrixport, the downturn reflects weakening market momentum, declining ETF inflows and reduced exposure of long-term holders in an environment lacking immediate macroeconomic catalysts. The company characterized the situation as the start of a “mini-bear market” and stated that Bitcoin’s next big move will likely depend on the Federal Reserve’s upcoming policy decisions.
Spot Solana ETFs recorded $12 million in inflows on Friday, extending a streak of 13 consecutive days since its Oct. 29 launch. Despite the positive ETF flows, Solana fell 15% for the week, while Ether fell 11%, reflecting broad weakness in the cryptocurrency markets.
