Institutional investors dumped nearly $2 billion worth of digital assets in a single week, extending a month-long selloff that has erased $4.92 billion from cryptocurrency investment products. The exodus marks one of the most severe institutional retreats from the crypto market since 2018, according to data from CoinShares.
What Happened: Extended Selloff
CoinShares reported $1.94 billion in net outflows from digital asset investment products during the latest seven-day period. The figure represents the fourth consecutive week of institutional selling, with combined outflows reaching $4.92 billion since the selloff began. That total ranks as the third-largest sustained withdrawal period since CoinShares began tracking institutional flows in 2018.
Bitcoin bore the brunt of the selling pressure with $1.27 billion in outflows.
Ethereum products saw $589 million exit, while Solana recorded $156 million in redemptions. XRP bucked the trend with $89.3 million in inflows.
The outflows represent 2.9% of total assets under management, with the decline expanding to 36% when combined with cryptocurrency price drops over the same period.
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Why It Matters: Sentiment Shift
The sustained institutional withdrawal signals a potential shift in market sentiment despite year-to-date inflows remaining robust at $44.4 billion.
A brief reversal emerged Friday when $258 million flowed into crypto products after seven straight days of selling. Bitcoin attracted $225 million in fresh capital that day, with Ether pulling in $57.5 million.
The magnitude of the four-week selloff suggests institutional investors are reassessing their exposure to digital assets amid heightened market volatility. The pattern mirrors previous periods of institutional retreat that preceded extended price corrections in cryptocurrency markets.
Closing Thoughts
The $4.92 billion institutional exodus over four weeks marks a significant reversal from earlier optimism in digital asset markets. While Friday's inflows provided temporary relief, the sustained selling pressure indicates institutional caution toward cryptocurrencies. Year-to-date flows remain positive, though the recent trend suggests a more defensive positioning among professional investors.
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