Digital asset investment products experienced another week of significant outflows, with $288 million withdrawn in the latest reporting period. This marks the fifth consecutive week of redemptions, pushing the cumulative total to $4 billion since the streak began, according to data from CoinShares. While substantial, this figure remains below the roughly $6 billion in outflows recorded during a comparable period last year.
Bitcoin-focused products led the losses, absorbing $215 million in withdrawals. In a contrasting move, short-Bitcoin investment vehicles attracted $5.5 million in inflows, indicating increased hedging or tactical bearish positioning by some investors. Ethereum funds also saw notable outflows of $36.5 million.
Amid the broad market weakness, XRP emerged as a notable exception, posting $3.5 million in inflows. This resilience occurred despite multi-asset products losing $32.5 million and TRON funds shedding $18.9 million. Minor inflows were also recorded for Solana and Chainlink, but these were insufficient to offset the broader altcoin sector's negative trend.
Trading activity has cooled significantly alongside the persistent outflows. Weekly exchange-traded product (ETP) volumes fell to $17 billion, the lowest level since July 2025. James Butterfill, Head of Research at CoinShares, described the trend as growing investor apathy following weeks of consistent redemptions.
Regional data revealed a stark divergence. United States-based funds were the primary driver of the global decline, accounting for $347 million in outflows. In contrast, Europe and Canada recorded a combined $59 million in net inflows. Switzerland led regional inflows with $19.5 million, followed by Canada ($16.8 million) and Germany ($16.2 million), suggesting some international investors viewed the recent price weakness as a buying opportunity.
The sustained withdrawal cycle, fading volumes, and rising hedging demand collectively signal a cautious institutional stance and a broader cooling in demand for crypto-linked investment products, shaping short-term market sentiment as digital assets search for renewed momentum.
