Following a period of solid inflows, digital asset investment products experienced a drastic trend reversal with crypto fund outflows totaling 1.73 billion dollars. According to the CoinShares weekly report published this Monday, this figure represents the largest divestment volume since mid-November 2025, evidencing a persistent bearish sentiment across the global market.
James Butterfill, head of research at CoinShares, attributed this behavior to dwindling expectations regarding interest rate cuts and negative price momentum. Furthermore, he highlighted that investors are showing disappointment as digital assets have not yet participated in the debasement trade, which has fueled massive liquidations within institutional portfolios during the last seven days.
Likewise, volatility has caused total assets under management to drop to 178 billion dollars, down from 193 billion the previous week. The withdrawals were mainly concentrated in the United States, where institutional investors seem to be reassessing their exposure amid global macroeconomic uncertainty, directly impacting the stability of major exchange-traded products.
Bitcoin and Ether lead losses while Solana resists the trend
On the other hand, Bitcoin and Ether led the withdrawals with a combined outflow of 1.72 billion dollars, reflecting pessimism regarding the sector’s two main currencies. In contrast, some altcoins managed to attract capital; specifically, Solana recorded inflows of 17.1 million dollars, proving that there is selective interest in projects with specific technological fundamentals and higher relative resilience.
Similarly, Chainlink funds also reported minor inflows of 3.8 million dollars, while short-Bitcoin products added 500,000 dollars. However, the dominance of the ETP technology from major issuers such as BlackRock and Fidelity did not prevent their iShares and Fidelity funds from leading the losses with outflows of 951 million and 469 million respectively.
Could the interest in altcoins signal an upcoming shift in market dynamics?
Since overall sentiment has not improved significantly since the October 2025 price crash, the market remains in a lateral consolidation phase. In this way, the flow toward assets like Solana and Chainlink suggests that investors are seeking refuge in ecosystems with practical utility, temporarily moving away from the extreme volatility of the highest-capitalization assets.
Finally, the sector awaits clearer signals from monetary policy to define whether these desertions are temporary or the start of a prolonged contractive cycle. It is expected that as long as interest rate expectations remain elevated, crypto fund outflows will continue to press prices downward, forcing asset managers to recalibrate their risk strategies for the upcoming quarter.
