Digital asset investment products experienced net outflows of $288 million in the latest week, marking a fifth consecutive week of redemptions. Bitcoin led the decline with $215 million in outflows, while short-bitcoin funds saw increased interest. Although select altcoins like XRP and Solana saw minor inflows, broader market sentiment remained negative as trading volumes dropped to their lowest level since July 2025.
Investor appetite for digital asset funds remains muted after $288 million in weekly outflows. This is the fifth straight week of redemptions, bringing aggregate withdrawals to $4 billion for the year.
Market participation has thinned significantly as exchange-traded product trading slid to $17 billion. According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin remains the primary drag on market sentiment.
Bearish positioning intensified as short-bitcoin funds absorbed $5.5 million, the highest inflow among individual assets. Ethereum also experienced notable withdrawals of $36.5 million, joined by continued selling in multi-asset products and Tron.
While XRP, Solana, and Chainlink attracted limited inflows, these gains did little to offset persistent net outflows across altcoins. The United States dominated weekly flows on the downside, contributing $347 million in outflows.
Investors in Switzerland, Canada, and Germany treated recent price declines as an entry point. Smaller allocations also flowed into Brazil, Australia, and the Netherlands.
Bitcoin slipped below $65,000 during Monday’s early Asia trading, triggering roughly $230 million in long liquidations. The move followed Donald Trump’s decision to raise a proposed global tariff to 15%.
This compounded policy uncertainty amid thinning risk appetite and renewed concerns around a potential US-Iran conflict. QCP Capital stated that the focus is not on whether Bitcoin has failed, but how long this storm persists. With BTC on pace for a fifth red monthly close, all eyes are now on upcoming catalysts.
