Major Crypto Outflows Hit Digital Asset Markets as Investor Confidence Wavers

Digital asset investment products are bleeding capital, with crypto outflows reaching $2 billion last week—the steepest weekly decline since February.

This marks three consecutive weeks of negative flows, totaling $3.2 billion in withdrawn funds as uncertainty around monetary policy and large-scale selling by crypto holders shake market confidence.

According to the latest CoinShares report, the selloff has been harsh. Total assets under management in digital asset exchange-traded products dropped from $264 billion in early October to $191 billion—a 27% decline that reflects growing caution among institutional investors.

US Market Bears the Brunt of Crypto Outflows

American investors led the exodus, accounting for 97% of total crypto outflows at $1.97 billion. Switzerland and Hong Kong followed with $39.9 million and $12.3 million in withdrawals, respectively.

Germany stood out as the lone bright spot, seeing $13.2 million in inflows as some investors viewed the price drops as buying opportunities.

Bitcoin took the hardest hit with $1.38 billion in outflows, representing 2% of its total assets under management over this three-week period. Ethereum fared worse proportionally, losing $689 million—roughly 4% of its AuM.

Smaller assets like Solana and XRP also saw modest outflows of $8.3 million and $15.5 million.

Bitcoin and Ethereum ETFs Continue Negative Streak

Monday’s trading session extended the pain. Bitcoin spot ETFs recorded $254.5 million in outflows, with BlackRock’s IBIT fund alone shedding $145.5 million. This marked the fourth straight day of losses, bringing the four-day total to nearly $1.9 billion.

Ethereum spot ETFs weren’t spared either, posting $182.8 million in outflows led by BlackRock’s ETHA. The asset has now experienced five consecutive days of withdrawals, totaling $911.4 million.

Market analysts point to several factors driving these crypto outflows:

• Elevated interest rates
• Fiscal uncertainty
• Bitcoin dropping below $90,000 to its seven-month lows

The combination has eroded the “store of value” narrative that previously attracted institutional money.

Interestingly, newly launched altcoin ETFs bucked the trend. XRP ETFs pulled in $25.41 million, Litecoin ETFs added $2 million, and Solana ETFs gained $8.26 million. This suggests some investors are rotating into alternative digital assets rather than exiting crypto entirely.