The global crypto investment market had another difficult week, with digital asset exchange-traded products posting heavy losses even as a handful of altcoin funds attracted fresh capital. According to new data from CoinShares, crypto ETPs recorded $446 million in net outflows over the past week, marking the second consecutive weekly decline in investor activity.
The pullback comes despite a notable exception. Funds linked to XRP continued to draw interest, bringing in $70 million in new inflows. This resilience stood out against a broader backdrop of caution across the market, especially among products tied to Bitcoin and Ethereum.
Bitcoin and Ethereum Lead the Retreat
CoinShares reported that the bulk of last week’s outflows were driven by Bitcoin and Ethereum products. Bitcoin ETPs alone saw nearly $443 million leave the market, while Ethereum-based funds lost $59 million. The selling pressure reflects lingering unease among investors following recent market volatility.
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Since the sharp market downturn on Oct. 10, total outflows from crypto ETPs have climbed to $3.2 billion. CoinShares described the trend as a sign that investor confidence has not yet fully recovered. The previous week had already seen $952 million in outflows, ending a three-week streak of inflows.
Despite the recent weakness, year-to-date flows remain broadly comparable to last year. Inflows currently stand at $46.3 billion, slightly below the $48.7 billion recorded in 2024. However, total assets under management have risen by only 10 percent this year, suggesting that many investors have yet to see meaningful gains once inflows and market performance are considered together.
XRP and Solana Buck the Trend
While most major crypto funds struggled, XRP and Solana products offered rare bright spots. XRP funds led the group with $70 million in inflows, followed by Solana funds, which attracted $7.5 million.
Part of XRP’s momentum came from Franklin Templeton’s XRP ETF, which launched in late November and has already brought in $28.6 million. The steady inflows suggest that some investors are selectively rotating into assets they see as undervalued or better positioned for longer-term growth.
Market Shock Still Weighs on Sentiment
The recent weakness traces back to October’s flash crash, widely regarded as the largest liquidation event in crypto market history. The sell-off was triggered in part by U.S. President Donald Trump’s threat to impose a 100 percent tariff on imports from China, which rattled global markets.
CoinShares noted that the scale of the liquidations pointed to the involvement of large institutional players or market makers, adding to the intensity of the downturn and its lasting impact on sentiment.
Regional Differences Emerge
Geographically, the United States once again led the global outflows, shedding $460 million. This was not surprising, as most major Bitcoin and Ethereum ETPs are listed in the U.S. Switzerland followed with $14 million in outflows.
Germany stood out as a notable exception. The country recorded $35.7 million in inflows last week and $248 million overall during the recent downturn. According to CoinShares, German investors appear to be using the latest price weakness as an opportunity to build positions rather than exit the market.
Looking Ahead
While the broader crypto ETP market remains under pressure, the continued inflows into XRP and select regional markets highlight a more nuanced investor landscape. As volatility persists, capital appears to be moving more selectively rather than leaving the asset class entirely.
For now, the data suggests a market still searching for stability, with cautious optimism emerging in pockets where investors see long-term potential.
