Digital asset exchange-traded products (ETPs) experienced a notable reduction in their exit pace during the last week, reaching 187 million dollars. According to the latest CoinShares report published this Monday, this figure represents a drastic drop from the 3,430 million previously withdrawn, suggesting that crypto investment products could be reaching a turning point in institutional sentiment.
This shift in flow dynamics, which coincides with a price stabilization following Bitcoin’s crash to 60,000 dollars, indicates a possible seller capitulation. By recording a record trading volume of 63.1 billion dollars, analysts consider that the market has reached a technical bottom, allowing institutional investors to begin reevaluating their positions in this high-volatility environment during the present month.
Bitcoin leads losses while XRP attracts institutional interest
On the other hand, funds linked to Bitcoin were the only ones that suffered significant losses during the reported period, with outflows totaling 264.4 million dollars. In this way, while the leading digital currency faced constant selling pressure, other assets like XRP managed to capture capital attention, attracting sixty-three million dollars in net inflows thanks to confidence in its technological ecosystem.
Likewise, Ether and Solana funds showed a modest recovery by recording gains of 5.3 and 8.2 million dollars, respectively. Therefore, the rotation of capital toward altcoins suggests that, despite general uncertainty, there is a selective appetite for diversifying within the available crypto investment products, seeking yield opportunities outside the absolute dominance of Bitcoin in the market.
In addition, SoSoValue data confirmed that spot Bitcoin ETFs accounted for the majority of the total outflows last week. Nonetheless, the record trading volume demonstrates vibrant institutional activity, which could be laying the groundwork for an organic recovery if selling pressure continues to decline. Global assets under management fell to 129 billion dollars, the lowest level observed since March of 2025.
Does record trading volume indicate a possible market bottom?
On the other hand, James Butterfill, head of research at CoinShares, noted that the slowdown in outflows is often a more informative signal than the price itself. Because weekly volume surpassed the previous all-time high of 56.4 billion, crypto investment products are demonstrating deep liquidity even under stress. Therefore, the formation of a “nadir” or lowest point appears to be the most likely scenario according to current indicators.
However, the year-to-date total still shows a negative balance of 1.2 billion dollars for crypto ETPs in general. While the industry watches these movements, the recent filing by 21Shares for an Ondo ETF with the SEC adds a layer of optimism regarding the expansion of blockchain technology toward real-world assets. Hence, the diversification of digital financial product offerings continues to advance despite the market corrections.
It is also relevant to highlight that Bitcoin ETF assets under management fell below 90 billion dollars recently. Despite this setback in valuations, interest in new financial instruments proves that issuers continue to bet on the integration of digital assets into traditional portfolios. In this way, the sector attempts to clear out excess leverage to build a much more solid market structure.
Finally, the evolution of flows in the coming weeks will be crucial to confirm if the bearish trend has definitively ended. It is expected that with a moderation in spot fund sales, the “Extreme Fear” sentiment will begin to dissipate among participants. Ultimately, this would allow crypto investment products to regain their appeal as a store of value and a driver of financial innovation in the economy global contemporary today.
