Crypto funds are bleeding again: five weeks of outflows show investor fatigue is growing

XRP, Solana and Chainlink recorded small inflows, but this was not enough to offset the broader, ongoing altcoin outflows.

Investor interest in digital asset funds remains subdued after weekly outflows of $288 million. This marks the fifth straight week of repayments, pushing total withdrawals to $4 billion, still behind last year’s $6 billion.

Market participation has declined significantly as ETP trading fell to $17 billion, the weakest level since July 2025, amid signs of pullback among both institutions and retail allocators globally this quarter.

Short bets are quietly rising

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin stays the biggest drag on market sentiment, with a loss of $215 million. Moreover, bearish positioning intensified as short bitcoin funds absorbed $5.5 million, which is the highest inflows among individual assets. Ethereum also saw notable withdrawals of $36.5 million, along with continued sales of multi-asset products and Tron, which lost $32.5 million and $18.9 million, respectively.

While XRP, Solana, and Chainlink attracted limited inflows of $1.2 million to $3.5 million, these gains did little to offset continued net outflows from altcoins.

The US dominated the weekly capital flows at the downside as it contributed $347 million in outflows, while investors outside the country looked to the recent price declines as a starting point. Inflows were led by Switzerland, Canada and Germany with $19.5 million, $16.8 million and $16.2 million respectively. Smaller allocations of $3 million, $2.7 million and $1 million also flowed to Brazil, Australia and the Netherlands respectively.

Bitcoin stuck in a macro storm

Bitcoin fell below $65,000 in early Asia trading Monday, ultimately triggering about $230 million in long liquidations as markets grapple with a convergence of geopolitical and macro risks. The move followed Donald Trump’s decision to increase a proposed global tariff to 15%, announced shortly after the United States Supreme Court struck down his “Liberation Day” tariffs.

This was enough to increase policy uncertainty, amid already declining risk appetite and renewed concerns about a potential conflict between the US and Iran. QCP Capital declared that the focus is not on whether Bitcoin has failed, but on how long this storm will last.

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With BTC heading for a fifth red monthly close, historically a late-stage signal, all eyes are now on upcoming catalysts, including the progress of the Clarity Act and the US-Iran talks. But QCP added that a recovery of $74,000 remains critical to a sustainable recovery.