Skip to content
- Digital funds faced strong weekly withdrawals as risk appetite weakened.
- US products led the sell-off, with Bitcoin and Ethereum under pressure.
- Defensive strategies and tokenized metals drew limited inflows.
Digital crypto and other digital asset investment products faced heavy pressure last week as global investors pulled capital at scale. Weekly outflows reached 1.7 billion dollars. This move erased earlier gains for the year.
Total flows now show a net outflow of 1 billion dollars year to date. Assets under management dropped sharply. Since the market peak in October 2025, the sector has lost 73 billion dollars in managed value. The shift reflects a clear change in market mood.
Investors now favor caution over growth. A tougher monetary outlook in the United States shaped recent decisions. Markets adjusted to expectations of higher rates for longer. This stance reduced demand for risk driven assets. Digital markets reacted fast.
Large Crypto Holders Sell as Markets Weaken
The activity of the large holders in terms of sales increased. This is a normal trend that can be observed in the historical cycles of the market trends. There are more sales that take place in the latter stages of the market cycle. In the meantime, the global tensions added a new dimension of uncertainty to the market. Conflicts and tensions increased the volatility in the market.
Digital assets were not immune to these trends. Most people choose to opt out of this option rather than face the volatility. Hence, the market sentiment suffered. There were outflows that were observed in the market. The outflows were observed in different parts of the world.
However, the highest outflows were observed in the United States. This resulted in the decline of the market. The products based in the United States recorded a total of 1.65 billion dollars in a single week. Canada recorded a decline in the market. The products based in Canada recorded a total of 37.3 million dollars in terms of outflow.
Sweden recorded a total of 18.9 million dollars in terms of outflow. Europe recorded a marginal sign of balance. Switzerland recorded a total of 11 million dollars in terms of inflow. Germany recorded a total of 4.3 million dollars in terms of inflow. However, there was a weak sentiment in the market. There was a lack of enthusiasm in the market.
Investors Shift to Defensive Crypto Products
Selling pressure was seen across major digital currencies. Bitcoin led the decline. Products related to it recorded a loss of 1.32 billion dollars. Ethereum products recorded a loss of 308 million dollars due to outflows. Other top digital currencies recorded outflows too. XRP products recorded outflows of 43.7 million dollars.
Solana products recorded a loss of 31.7 million dollars. However, there were a few segments that recorded positive inflows. One segment was related to short bitcoin products. These products recorded a gain of 14.5 million dollars. Assets under management for these products increased by 8.1 percent this year.
Another segment that recorded positive inflows was related to hype products. These products recorded inflows of 15.5 million dollars. Interest in these products increased due to increased on-chain trading related to tokenized precious metals. Currently, market participants are closely observing policy indicators, liquidity conditions, and global risks. However, until then, digital products will continue to remain volatile.
Read More: Metaplanet Lifts Bitcoin Income Forecast to ¥8.6B After Strong Q4 Results
