Crypto funds see sixth straight week of outflows; XRP, Solana continue to buck trend

Quick Take

Digital asset investment products faced a sixth consecutive week of outflows, with crypto funds shedding $9 million last week — now up to $464 million over the last 10 weeks.
Europe bucked the trend regionally with inflows of $16 million.
XRP and Solana products continued their contrarian inflow streak.

Crypto investment products at asset managers such as CoinShares, Grayscale, 21Shares, Bitwise and ProShares faced a sixth consecutive week of outflows — with crypto funds shedding a further $9 million last week.

Outflows cooled considerably from the $54 million seen in the prior week, though they added to a ten-week streak of aggregated outflows that now reach $464 million.

The trend underscores caution in the market among investors, with divergence building from a regional perspective in response to the regulatory landscape, according to CoinShares research head James Butterfill in the European digital asset manager’s latest report.

“A divergence in sentiment from a regional perspective was evident this week, with inflows into Europe totaling $16 million, where investors see recent regulatory disappointment as an opportunity. While U.S. investors pulled out $14 million, seemingly in a continued funk over recent events.” Butterfill noted.

Weekly crypto asset flows. Image: CoinShares.

Trading volume also fell to $820 million for the week, down from over $1 billion in the prior week and significantly below the yearly average of $1.3 billion — mimicking a similar trend in the broader crypto market.

XRP and Solana inflows continue despite bitcoin and ether outflows

Bitcoin investment products recorded outflows for the third consecutive week, amounting to $6 million. Short-Bitcoin products also saw outflows of $2.8 million — suggesting investors are continuing to capitulate their short positions, Butterfill wrote. Short-Bitcoin outflows now represent a 78% reduction in those assets under management over the last 22 weeks.

Ethereum saw outflows for the sixth week in a row, totaling $2.2 million.

However, XRP and Solana continued to buck the trend with inflows of $0.66 million and $0.31 million, respectively — indicating a more discerning approach to the altcoin space by investors looking for value, Butterfill noted.

On Friday, CoinShares launched a new hedge fund division — expanding its reach to U.S. investors. It appointed traditional asset management veteran Lewis Fellas to head the new initiative.