Last week, the crypto market witnessed its most significant weekly sell-off, with outflows hitting a record $2.9 billion, according to CoinShares‘ latest weekly report.
This marked the third consecutive week of capital exiting digital asset investment products, bringing total outflows to $3.8 billion.
CoinShares’ Head of Research, James Butterfill, pointed out multiple reasons for the downturn. According to him, the recent security breach at Bybit, alongside a more assertive stance from the US Federal Reserve, contributed to weakened investor confidence that spurred capital withdrawals.
Butterfill also noted that investors took profits following a 19-week inflow streak of $29 billion.
Bitcoin products in the US lead to outflows
Investors pulled $2.87 billion from US-based funds, dealing a significant blow to major spot Bitcoin exchange-traded fund (ETF) issuers.
CoinShares reported that BlackRock recorded $1.3 billion in withdrawals, while Fidelity lost over $569 million. Grayscale also faced steep exits, with $421 million leaving its funds.
Other firms, including Bitwise and 21Shares, saw combined outflows surpassing $130 million.
Outside the US, Switzerland and Canada saw net outflows of $73 million and $16.9 million, respectively. Germany, however, bucked the trend, attracting $55.3 million as investors maintained a bullish outlook.
Meanwhile, Bitcoin’s decline to a three-month low below $80,000 triggered a modest rise in short Bitcoin product inflows, which reached $2.3 million.
Sui and XRP defy market trends.
Ethereum, the second-largest digital asset by market capitalization, also faced a sharp sell-off, registering record weekly outflows of $300 million.
Investment products in other digital assets, such as TON and Solana, also struggled, shedding $22.6 million and $7.4 million, respectively.
Additionally, blockchain equities ETPs didn’t escape the negative sentiment, seeing $25.3 million outflows.
However, despite the widespread sell-off, some assets attracted fresh capital. Sui led inflow, securing $15.5 million.
XRP followed with a $5 million inflow, fueled by the continued speculation over a potential US spot XRP ETF and the belief that the digital asset is well-positioned for regulatory clarity under the Donald Trump administration.
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