Digital asset investment products saw $414 million in outflows last week, breaking a five-week inflow streak. The shift was driven by investor caution over geopolitical tensions and inflation concerns, with U.S. investors leading the withdrawals. Bitcoin and Ethereum saw significant outflows, while assets like XRP attracted new capital. Analysts note Bitcoin’s price is likely to remain range-bound in the near term.
A five-week streak of inflows into digital asset investment products ended sharply with $414 million in outflows. CoinShares reported that investor caution grew due to the Iran conflict and inflation concerns, shifting expectations for the upcoming FOMC meeting.
Total assets under management fell to $129 billion, levels last seen in early February. Ethereum was hit hardest with $222 million exiting, bringing its yearly total to a net loss of $273 million.
Bitcoin products experienced $194 million in outflows last week but remain net positive for the year. Short-Bitcoin products, however, drew an additional $4 million during the same period.
Solana and multi-asset products recorded outflows of $12.3 million and $4.4 million respectively. XRP stood out with $15.8 million in inflows, while Chainlink and Stellar saw smaller gains.
U.S. investors drove the majority of crypto outflows, withdrawing $445 million. Germany and Canada bucked the trend, adding $21.2 million and $15.9 million respectively.
QCP Capital observed that Bitcoin’s price is likely to stay range-bound between $65,000 and $70,000. The asset is on track for its sixth straight monthly decline and first three-month losing streak of the year.
The firm observed that stronger conviction is needed for any meaningful upside. It expects Bitcoin to remain largely sideways until early April amid ongoing geopolitical risks.
