A wave of capital retreated from digital-asset investment products last week, with global funds logging $513 million in net outflows, according to CoinShares. The shift marks one of the sharpest pullbacks of 2025, following a cascade of liquidations that rattled crypto markets earlier this month.
The data shows that sentiment diverged sharply between regions. U.S. funds accounted for nearly all the withdrawals, about $621 million, while institutional investors in Germany, Switzerland, and Canada quietly added exposure, bringing in roughly $150 million combined.
CoinShares’ head of research James Butterfill noted that total outflows since the October sell-off have reached $668 million, signaling that while exchange-traded product (ETP) investors remain cautious, onchain participants have turned more defensive. Despite the withdrawals, activity levels are still robust: weekly ETP trading volume hit $51 billion, roughly twice the yearly average.
The pattern suggests investors are rotating rather than retreating, trimming U.S. exposure while maintaining positions abroad. With liquidity intact but risk appetite subdued, the next market move could hinge on whether this week’s outflows prove to be a pause before reentry or the start of a deeper reset.