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Digital asset investment products experienced significant outflows last week, totaling $795 million, according to a recent report. This development has brought the year-to-date figure down to just $165 million, effectively erasing most of the gains for 2025. The data highlights the third consecutive week of outflows, showcasing a challenging period for the cryptocurrency market.
Factors Driving Outflows in Digital Asset Investments
The recent surge in outflows has been attributed to ongoing global tariff activities, which have negatively impacted market sentiment. According to James Butterfill, head of research at CoinShares, these macroeconomic factors have been a consistent source of pressure on digital asset investment products since February 2025. The result has been a steady decline in inflows, reflecting investor uncertainty in the current market environment.
Despite the overall negative trend, there was a modest end-of-week rebound. This recovery helped boost the total assets under management (AuM) by 8%, reaching $130 billion from their lowest levels recorded on April 8.
Crypto Asset Outflows by Type
When broken down by individual cryptocurrencies, Bitcoin (BTC) recorded the largest share of outflows, amounting to $751 million last week. Despite this, BTC managed to retain significant year-to-date inflows, which stand at $545 million. Short Bitcoin products also faced outflows of $4.6 million, indicating a broader trend of investor retreat from Bitcoin-related assets.
Ethereum (ETH) came in second, with $37.6 million in outflows. Other altcoins, including Solana (SOL), Aave, and Sui, experienced smaller outflows of $5.1 million, $780,000, and $580,000 respectively.
Altcoins That Bucked the Trend
While most cryptocurrencies faced outflows, a few altcoins managed to attract minor inflows. XRP led this category with $3.5 million in inflows. Additionally, Ondo and Algorand (ALGO) recorded inflows of $460,000 and $250,000 respectively, signaling some investor interest in specific alternative digital assets.
Regional Breakdown of Outflows
The United States was the largest contributor to outflows by region, accounting for $763 million of the total $795 million. Other regions such as Switzerland and Hong Kong also saw notable outflows, with $12 million and $11 million respectively.
These figures reflect the current challenges faced by the cryptocurrency market as it navigates macroeconomic pressures and shifting investor sentiment. While the market remains volatile, the data underscores the importance of staying informed and adopting a cautious approach when investing in digital assets.
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