Crypto Funds See Fourth Week of Outflows, But XRP and SOL Shine: CoinShares Report

Four consecutive weeks of crypto fund outflows reached $3.74 billion, but altcoins are outperforming as US investors withdraw from the market.

Investment products linked to digital assets saw outflows for the fourth week in a row, recording $173 million and pushing cumulative losses to $3.74 billion in four weeks. Early in the week, inflows reached $575 million, despite brief optimism, but continued price weakness led to outflows of $853 million soon after.

Sentiment stabilized slightly on Friday following softer CPI data as these investment vehicles witnessed inflows of $105 million. Trading activity also cooled significantly, with ETP volumes falling to $27 billion, less than half of the previous week’s record high of $63 billion.

Altcoin appetite increases

In the latest edition of the “Digital Asset Fund Flows Weekly Report,” CoinShares revealed Bitcoin lagged in terms of sentiment after raising $133 million from investment products linked to the asset. Short Bitcoin products also fell as combined losses reached $15.4 million over the past two weeks, a pattern often observed near cyclical lows, according to the asset manager.

Ethereum followed a similar path after withdrawing $85.1 million, while Hyperliquid posted $1 million in losses. Multi-asset strategies also declined, with $14 million disappearing from the category. On the other hand, interest remained high in altcoin-focused investment products such as XRP, Solana and Chainlink, which raised $33.4 million, $31 million and $1.1 million respectively. Litecoin also won a modest $0.4 million.

Regional sentiment showed a clear divide between the US and international markets. While the US saw an outflow of $403 million, other regions saw a combined $230 million in new capital. Germany led with $115 million, followed by Canada with $46.3 million and Switzerland with $36.8 million. Brazil added $14 million, Australia nearly $10 million and Sweden $2.8 million over the same period.

Predictable correction?

Bitcoin is down nearly 50% since its all-time high last October. prompting market analysts to predict that the price could fall as low as $50,000, before any meaningful recovery. Meanwhile, Hedy Wang, fintech veteran and founder of BlockStreet, believes the current turbulence is a hallmark of a maturing market rather than a fundamental collapse. In a statement to CryptoPotatosaid Wang,

“Unlike previous speculative bubbles, today’s Web3 ecosystem is underpinned by a more resilient and collaborative community ethos focused on building for the long term. Therefore, an analytical view suggests that the market is undergoing a natural, albeit volatile, evolutionary phase, with data pointing to a repeating historical pattern rather than an unprecedented crisis.”