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Crypto Products Bleed $3.74B While Altcoin Demand Holds Up

Crypto Products Bleed $3.74B While Altcoin Demand Holds Up

Digital asset investment products recorded $173 million in net outflows for the week, marking a fourth consecutive week of withdrawals that have now totaled $3.74 billion, according to CoinShares' latest weekly report — though select altcoins including XRP (XRP) and Solana (SOL) bucked the trend with a combined $64.4 million in fresh inflows.

What Happened: Crypto Fund Outflows Continue

The week followed a volatile pattern. Early optimism drove $575 million in inflows, but persistent price weakness then triggered $853 million in redemptions, according to the CoinShares Digital Asset Fund Flows Weekly Report.

Sentiment improved slightly on Friday after softer CPI data prompted $105 million in inflows. Trading volumes for exchange-traded products fell to $27 billion, less than half the $63 billion recorded the prior week.

Bitcoin (BTC) led the losses with $133 million in outflows, while short Bitcoin products shed $15.4 million over two weeks — a pattern CoinShares said is frequently observed near cyclical lows. Ethereum (ETH) lost $85.1 million, and multi-asset strategies saw $14 million in withdrawals.

XRP, Solana and Chainlink (LINK) attracted $33.4 million, $31 million and $1.1 million respectively. Litecoin (LTC) added $0.4 million.

Regional flows diverged sharply: the United States posted $403 million in outflows while international markets collectively drew $230 million. Germany led at $115 million, followed by Canada at $46.3 million, Switzerland at $36.8 million, Brazil at $14 million, Australia at nearly $10 million and Sweden at $2.8 million.

Also Read: Solana ETFs Draw $31M As Price Coils For Big Move

Why It Matters: Market Correction or Deeper Trouble

Bitcoin has fallen nearly 50% from its all-time high last October, and some analysts have warned the price could slide to $50,000 before any sustained recovery takes hold.

Hedy Wang, fintech veteran and founder of BlockStreet, offered a more measured view. In a statement, Wang said the current turbulence reflects a maturing market rather than a fundamental collapse.

"Unlike earlier speculative bubbles, the current Web3 ecosystem is supported by a more resilient and collaborative community ethos focused on long-term building," Wang said. "An analytical view suggests the market is undergoing a natural, albeit volatile, evolutionary phase, with data pointing towards a repeating historical pattern rather than an unprecedented crisis."

Read Next: Wintermute Launches Institutional Gold Token Trading As Market Cap Hits $5.4B

Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.
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