Digital asset investment products recorded US$1.7 billion in outflows this week, marking a second consecutive week of capital leaving the market, according to CoinShares’ latest report.
Investor exodus hits digital assets
This brings year-to-date flows to a net outflow of US$1 billion, reversing earlier gains and highlighting deteriorating investor confidence. Total assets under management have dropped by US$73 billion since October 2025, following a period of strong price highs.
The outflows were heavily concentrated in the United States, where US$1.65 billion left digital asset funds. Canada and Sweden also reported modest outflows, while Switzerland and Germany experienced minor inflows of US$11 million and US$4.3 million, respectively. Bitcoin led the declines with US$1.32 billion withdrawn, followed by Ethereum at US$308 million. Other major assets, including XRP and Solana, also experienced outflows, reflecting broad-based market caution.
Defensive plays and niche gains
Despite the overall negative trend, some segments saw inflows. Short Bitcoin products attracted US$14.5 million, benefiting from defensive positioning as investors hedge against market weakness. Hype investment products, particularly tokenized precious metals, also gained US$15.5 million, reflecting heightened interest in niche on-chain activity and alternative digital assets.
CoinShares analysts attribute the sell-off to a combination of macroeconomic and market-specific factors, including a more hawkish Federal Reserve stance, continued large-scale selling associated with Bitcoin’s four-year cycle, and ongoing geopolitical volatility. The report underscores a growing divergence between mainstream crypto assets under pressure and smaller, specialized products that continue to attract investor interest.
As sentiment remains fragile, market participants are closely watching for potential stabilization in major digital assets, even as niche crypto products continue to benefit from focused investor attention.
Meanwhile, digital asset investment products posted $454 million in net outflows last week, extending a sharp reversal that has erased most of the gains recorded at the start of 2026, according to a CoinShares report.
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