$173M Crypto Fund Outflows Persist Amid Altcoin Surge
Crypto Funds Experience Fourth Straight Week of $173M Outflows as Bitcoin Falls Below $70K
Cryptocurrency investment vehicles continued their downward trend last week, recording substantial outflows totaling $173 million, coinciding with declines in major assets like Bitcoin and Ether, even as certain altcoins such as XRP and Solana demonstrated resilience and attracted positive investor interest across international markets.
Investment products tied to digital assets, particularly exchange-traded products (ETPs), were unable to generate sufficient inflows to counteract the prevailing bearish mood, resulting in the fourth successive week of net withdrawals from these funds.
According to the latest weekly report from CoinShares released on Monday, these ETPs specifically saw $173 million in outflows, a figure that comes on the heels of the prior week’s $187 million exodus, underscoring a persistent pattern of investor caution.
Over the course of the last two weeks, the outflows have been somewhat moderated in scale compared to earlier periods, yet the cumulative impact across the four-week span now reaches approximately $3.8 billion. Meanwhile, the total assets under management (AUM) for these products have dipped to around $133 billion, marking the lowest level observed since April 2025 and reflecting broader concerns about market sustainability.
James Butterfill, who serves as the head of research at CoinShares, pointed to widespread pessimism in the cryptocurrency sector and sustained price depreciation as the primary drivers behind last week’s capital flight. Bitcoin, for instance, opened the week trading at $70,000 but experienced a sharp decline, plummeting to as low as $65,000 by Thursday, based on pricing data from Coinbase.
Bitcoin Dominates Outflows While XRP and Solana Show Strength
Products linked to Bitcoin bore the brunt of the week’s outflows, with investors pulling out $133.3 million, which contributed to a reduction in AUM for Bitcoin ETPs to roughly $106 billion. This trend was especially pronounced in the United States, where spot Bitcoin exchange-traded funds (ETFs) faced outflows nearing $360 million over the same period, as tracked by SoSoValue analytics.
The downturn in Bitcoin mirrored a similar pattern in Ether-focused funds, which also suffered $85 million in outflows. In contrast, United States spot Ether ETFs managed to secure modest inflows amounting to $10 million, providing a small glimmer of positivity amid the otherwise challenging environment.
Standing out against the dominant bearish flow were ETPs associated with XRP and Solana, which not only resisted the outflow trend but actively drew in fresh capital. XRP products led with inflows of $33.4 million, closely followed by Solana at $31 million, positioning these altcoins as the standout performers during a week of widespread retreats.
US Products Face Heavy $400M+ Outflows as Global Regions Rally
Butterfill drew attention to a stark contrast in investor behavior between the United States and the rest of the world. While American cryptocurrency investment offerings endured outflows exceeding $403 million, investment products in every other region collectively posted strong inflows totaling $230 million, highlighting divergent regional appetites for risk.
Among the international markets, Germany recorded the most substantial gains with $115 million in inflows, followed by Canada at $46 million and Switzerland at $37 million. These figures illustrate how European and other non-US markets are absorbing capital even as sentiment sours stateside.
This wave of outflows unfolded against a backdrop of revised projections from analysts at Standard Chartered, who last week adjusted their Bitcoin price target for 2026 downward from $150,000 to $100,000. They further anticipated a potential interim drop to $50,000 before any meaningful rebound, injecting additional caution into an already jittery market.
The combination of these outflows, price volatility, and tempered forecasts underscores the complex dynamics at play in the cryptocurrency investment landscape. Investors appear to be rotating away from established leaders like Bitcoin and Ether toward promising altcoins, potentially signaling a shift in momentum that could influence future market directions.
As assets under management hover near multi-month lows and weekly data reveals deepening divides between asset classes and geographies, market participants will be closely monitoring whether this trend persists or if incoming capital from resilient regions can stabilize the sector. The performance of XRP and Solana, in particular, suggests that selective optimism endures, even as broader funds grapple with sustained pressure.
