TL;DR
Digital asset investment products continued their slump last week, posting $288 million in outflows, marking a fifth consecutive weekly decline. The persistent weakness has now pushed cumulative outflows to $4.0 billion, a figure that remains below the $6 billion recorded during the same stretch last year. Trading activity also cooled sharply, with volumes falling to $17 billion, the lowest level since July 2025, and a sign that investor enthusiasm has faded after several weeks of elevated ETP turnover.
A pronounced regional divide continued to shape flows. The US accounted for $347 million in outflows, underscoring a sustained wave of negative sentiment among domestic investors. In contrast, Europe and Canada collectively attracted $59 million in inflows as buyers outside the US viewed recent price softness as an opportunity. Switzerland led with $19.5 million in inflows, followed by Canada at $16.8 million and Germany at $16.2 million, highlighting a more constructive stance across several non‑US markets.
Bitcoin remained the primary driver of the downturn, recording $215 million in outflows as sentiment around the asset continued to deteriorate. Yet the bearish mood also fueled renewed interest in short‑bitcoin products, which saw $5.5 million in inflows, the largest of any individual asset category. The contrasting flows reflected a market increasingly divided between long‑term holders stepping back and tactical traders positioning for further downside.
Ethereum posted the second‑largest outflows at $36.5 million, extending a trend of cautious positioning across major altcoins. Multi‑asset products also struggled, shedding $32.5 million, while Tron saw $18.9 million in outflows. The breadth of withdrawals suggested that investors were not merely rotating within the sector but were instead reducing exposure across multiple digital asset strategies.
A handful of altcoins managed to attract modest inflows, though not enough to counter the broader downturn. XRP brought in $3.5 million, Solana added $3.3 million, and Chainlink gained $1.2 million. Despite these pockets of resilience, the overall picture remained one of subdued demand, with the market still searching for catalysts capable of reversing the multi‑week slide.
