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Digital Asset Funds See $1.17B Outflows Amid Market Uncertainty

Quick Breakdown 

  • Digital asset funds experienced $1.17B outflows, led by Bitcoin and Ethereum.
  • U.S. markets face heavy withdrawals; Europe sees steady inflows.
  • Altcoins like Solana and HBAR attract significant capital amid volatility.

 

Digital asset investment products recorded a second consecutive week of outflows, totaling US$1.17 billion, as market sentiment remained weak due to lingering uncertainty over a potential U.S. interest rate cut and the fallout from the October 10 liquidity cascade. Bitcoin and Ethereum were the hardest hit, seeing outflows of US$932 million and US$438 million, respectively, according to the latest report by CoinShares Research.

U.S. outflows contrast European stability

The divergence between regions persisted last week, with U.S. investors responsible for US$1.22 billion of the total outflows. At the same time, European markets, including Germany and Switzerland, continued to attract inflows of US$41.3 million and US$49.7 million, respectively. Elevated trading volumes of US$43 billion reflected short-lived optimism midweek as investors speculated on a resolution to the U.S. government shutdown. However, the optimism faded by Friday, leading to renewed withdrawals from digital asset funds.

Bitcoin saw modest support from short-position inflows, totaling US$11.8 million, marking the largest weekly short inflows since May 2025. Ethereum’s outflows were substantial but less than Bitcoin’s, highlighting a continued preference for stable or alternative assets amid volatility.

Altcoins defy market trends

Despite broader market weakness, select altcoins demonstrated resilience. Solana led inflows with US$118 million last week, contributing to a nine-week total of US$2.1 billion. Other altcoins attracting investment included HBAR with US$26.8 million and Hyperliquid at US$4.2 million, suggesting a rotation of capital into promising non-Bitcoin and non-Ethereum assets. 

Analysts suggest that this trend reflects investor diversification strategies and growing confidence in the fundamentals of select altcoins, despite macroeconomic pressures.

Interestingly, digital asset investment products also recorded their strongest weekly performance on record, attracting US$5.95 billion in inflows in response to weak U.S. employment data and renewed macroeconomic uncertainty.

 

If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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