Bitcoin hemorrhages $1.38 billion as traders rush to bearish bets, while Ethereum hits even harder

Sui, Litecoin and Cardano attracted modest inflows despite broader market weakness.

In digital asset investment products, $2 billion left the market last week, the largest outflow since February. It was also the third straight week of negative flows, bringing the combined total to $3.2 billion. CoinShares attributed the downturn to continued uncertainty over monetary policy, in addition to selling activity from major crypto whales.

Falling prices have further weighed on the sector, causing total assets under management in digital asset ETPs to fall by almost 27% from their early October peak of $264 billion to $191 billion.

Exodus of digital assets

In the latest edition of the Digital Asset Fund Flows Weekly Report, CoinShares reported that Bitcoin was hit hardest by last week’s negative sentiment, recording outflows of $1.38 billion as it extends its three-week streak and now accounts for 2% of total assets under management (AuM). At the same time, short Bitcoin products attracted $9.1 million in inflows last week, suggesting some traders are positioning themselves for further downside. Zooming out, these ETPs have seen new inflows of $18.1 million over the past three weeks.

Ethereum performed even worse, witnessing outflows of $689 million, equivalent to 4% of its assets under management. Solana and XRP also posted small outflows of $8.3 million and $15.5 million, respectively. On the other hand, Sui, Litecoin and Cardano saw modest inflows of $6 million, $3.3 million and $0.4 million.

Multi-asset investment products also attracted $31.2 million in new capital. Cautious market conditions pushed investors toward these diversified products, resulting in $69 million flowing into multi-asset ETPs over the past three weeks.

Negative sentiment affected most regions and was overwhelmingly led by the US, which recorded outflows of $1.97 billion, or 97% of the global total. Several other markets also saw similar outflows, including Switzerland with $39.9 million, Sweden with $1.3 million and Hong Kong with $12.3 million. Canada and Australia followed suit with $9.8 million and $1.8 million in outflows.

On the other hand, Germany stood out as the only major region to benefit from the price drop, attracting an inflow of $13.2 million. Brazil also bucked the trend and registered a more modest amount of $2.4 million in new capital.

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Sentiment Cautious but constructive

Despite the current problems, certain market experts believe that Bitcoin is in the later stages of its correction, rather than entering a new downtrend. In a statement to CryptoPotatoAlexander Zahnd, interim CEO of Zilliqa, explained that the market has twice rejected levels just below $100,000, meaning the forced selling has largely disappeared and buyers are quietly defending a key support zone.

While it is still too early to confirm a bottom, he said the market is stabilizing. The director added that the recent bearish sentiment is being driven by ETF outflows, thinner liquidity and a temporary pause in institutional allocation, none of which indicate a structural shift. Instead, investors are waiting for clearer macro signals after the recent Fed pause and concerns about the US shutdown. He described the general sentiment as “cautious but constructive.”

Zahnd added:

“Positioning has lightened, but we don’t see panic. The rotation into ecosystems like Solana shows that capital is still active, just more selective. This phase is about rebuilding pressure, not chasing momentum. If anything, the current environment favors gradual accumulation based on support rather than trying to time dramatic moves. The next boost will likely come once ETF flows stabilize or new institutional buyers come back in.”