Digital asset investment products recorded $1.7 billion in outflows for a second consecutive week, flipping year-to-date flows to a net negative $1 billion and marking what CoinShares described as a significant deterioration in investor sentiment toward the cryptocurrency sector.
What Happened: Crypto Fund Outflows Accelerate
The outflows were heavily concentrated in the United States, which saw $1.65 billion exit digital asset products.
Canada and Sweden also experienced negative sentiment, posting outflows of $37.3 million and $18.9 million respectively. Switzerland and Germany bucked the trend with minor inflows of $11 million and $4.3 million.
Bitcoin (BTC) led the exodus with $1.32 billion in outflows, while Ethereum (ETH) saw $308 million leave the asset class. Recent market favorites XRP (XRP) and Solana (SOL) recorded outflows of $43.7 million and $31.7 million respectively.
Short Bitcoin products proved an exception, attracting $14.5 million in inflows with year-to-date assets under management rising 8.1%. Hype (HYPE) investment products also gained $15.5 million, benefiting from on-chain activity in tokenized precious metals.
Also Read: Dogecoin Rally Hits Wall At $0.1065 Level
Why It Matters: Multiple Headwinds Converge
CoinShares attributed the sentiment shift to several factors: the appointment of a more hawkish Federal Reserve chair, continued whale selling associated with the four-year market cycle, and heightened geopolitical volatility.
Total assets under management have fallen by $73 billion since price highs in October 2025. The reversal from net inflows to net outflows represents a notable change in institutional appetite for the asset class.