According to the latest weekly report from digital asset manager CoinShares, cryptocurrency investment products have experienced a complex and contrasting flow pattern, highlighting both record-breaking inflows and a recent streak of outflows driven by regional disparities and investor caution.
Record Inflows Year-to-Date: James Butterfill, Head of Research at CoinShares, noted that digital asset investment products saw inflows totaling $646 million in a recent week, contributing to a year-to-date total of $13.8 billion. This figure marks the highest annual inflow level ever recorded, surpassing the previous peak of $10.6 billion seen in 2021.
Bitcoin Dominance and Altcoin Flows: Bitcoin remains the primary focus, attracting inflows of $663 million in the reported week. Concurrently, short-bitcoin investment products saw outflows of $9.5 million, their third consecutive week of redemptions, suggesting a minor capitulation among bearish investors. In contrast, Ethereum experienced outflows of $22.5 million, extending its streak to four consecutive weeks. Other altcoins showed resilience, with Litecoin attracting $4.4 million in inflows and Solana gathering approximately $4 million.
Recent Outflow Streak and Regional Split: However, data for the week ending May 16, 2025, tells a different story, revealing a fourth consecutive week of net outflows totaling $173 million. This trend underscores a period of pronounced institutional caution. A stark geographical divide emerged: United States-based products faced substantial outflows of $403 million, while European and Canadian markets attracted fresh capital, with Germany leading at $115 million in inflows, followed by Canada ($46.3 million) and Switzerland ($36.8 million).
Asset-Specific and Market Activity Details: During this outflow period, Bitcoin-focused products saw $133 million exit, and Ethereum products experienced outflows of $85.1 million. Notably, short-Bitcoin products also registered outflows of $15.4 million over two weeks, a pattern analysts sometimes associate with potential selling exhaustion. Amid the broader trend, products tracking XRP, Solana (SOL), and Chainlink (LINK) recorded net inflows, indicating selective institutional interest. Trading volume for these exchange-traded products plummeted to approximately $27 billion from $63 billion the prior week, signaling a broad 'wait-and-see' approach among investors.
Context and Expert Analysis: This four-week outflow streak is the most sustained since late 2023, reversing a strong inflow cycle in Q1 2025 that was driven by U.S. spot Bitcoin ETF adoption. The shift began in mid-April, coinciding with changing macroeconomic expectations around inflation and interest rates. Analysts point to Europe's advancing MiCA regulatory framework as a potential factor boosting confidence there, creating a divergent investment landscape. Butterfill cautioned that there are signs appetite from ETF investors is moderating, with weekly flows not reaching early March levels and volumes declining to $17.4 billion from $43 billion.
