Digital asset investment products just recorded another week of intense selling pressure, extending one of the largest outflow streaks in years. According to fresh CoinShares data, $1.94 billion exited crypto funds last week, bringing the four-week total to $4.92 billion, the third-largest outflow run since 2018. The selloff reflects a sharp sentiment shift driven by macro uncertainty, forced deleveraging, and ETF panic selling, although the week ended with the first signs of stabilization.
A Brutal Week for Bitcoin and Ethereum Outflows
Bitcoin once again carried the heaviest burden. Funds tied to BTC saw $1.27 billion in outflows, continuing the trend from recent weeks as fear spiked around ETF redemptions and rising volatility.
Yet Friday marked an important shift: Bitcoin recorded $225 million in inflows, its strongest daily rebound during this drawdown, suggesting large players may be stepping back in as prices stabilize.
Ethereum had an even tougher week proportionally. ETH investment products experienced $589 million in outflows, representing 7.3% of all assets under management, a significant weekly drain. Still, like Bitcoin, ETH saw a small turnaround late in the week with $57.5 million in Friday inflows, showing early hints of bargain buying after intense selling pressure.
A key factor: ETH remains down significantly from recent highs, and institutional positioning has turned defensive. BitMine’s recent “buy-the-dip” accumulation highlights a growing split between long-term conviction holders and short-term fear sellers.
Altcoin Breakdown: Solana Hit Hard, XRP Stays Strong
Altcoins were mixed, but Solana suffered one of the steepest weekly declines with $156 million in outflows, keeping pressure on a market already shaken by volatility and liquidity stress.
XRP was the clear standout, posting $89.3 million in inflows, continuing a trend of strong institutional interest following new ETF launches and regulatory clarity. As major issuers roll out XRP products, capital rotation into XRP funds has intensified while other assets remain under stress.
Regional Flows Show the U.S. Driving the Panic
The United States overwhelmingly led the outflows with $1.686 billion exiting American ETFs last week alone. Month-to-date, U.S. products are down $4.339 billion, reflecting widespread redemptions from recently launched Bitcoin ETFs and a sharp cooling in risk appetite.
Germany and Switzerland also saw heavy selling, with weekly outflows of $118 million and $79.7 million, respectively.
By contrast, smaller markets like Australia and Brazil saw mild inflows, suggesting that the capitulation is concentrated in major Western markets rather than global.
Provider Breakdown: iShares and Grayscale Lead the Withdrawals
The heaviest bleeding came from the largest ETF issuers:
- iShares U.S. funds: –$1.645 billion
- Grayscale: +$114 million (but –$662 million month-to-date)
- Fidelity Bitcoin Fund: –$116 million
- 21Shares AG: –$82 million
The only consistent bright spot is Short Bitcoin, which recorded $19 million in inflows last week and 40 million month-to-date, as traders hedge against further downside.
Despite the heavy redemptions, year-to-date flows remain massively positive at $44.43 billion, showing how large January–September inflows were before the current reset.
Signs of Stabilization Emerging
Despite the intense selling, the last trading day of the week gave bulls a reason to breathe. The market saw $258 million in inflows, ending a streak of seven straight negative sessions.
Short-term sentiment remains shaky, but the late-week reversal, coupled with oversold technical conditions across Bitcoin and Ethereum, suggests buyers may be preparing for accumulation.
Total assets under management across all digital asset funds remain high at $44.4 billion, showing the industry still holds significant institutional capital despite the correction.
Conclusion
The crypto market is undergoing one of its largest institutional pullbacks in years, with Bitcoin, Ethereum, and Solana bearing the brunt of the selloff. Yet amid the chaos, XRP continues to attract meaningful inflows, positioning itself as one of the cycle’s most resilient institutional assets.
Whether this marks the tail end of the drawdown, as late-week inflows suggest, will depend on macro stabilization, ETF behavior, and the return of risk appetite.
