The digital asset market faced another challenging week, recording massive investment product outflows totaling 1.94 billion dollars. According to a latest report , this negative trend extends the current streak to four consecutive weeks, accumulating nearly 5 billion in withdrawals. Despite the strong selling pressure, tentative signs of stabilization were observed on Friday with the return of positive flows.
Bitcoin was the epicenter of selling pressure, recording outflows of 1.27 billion dollars, although it managed to recover 225 million on Friday. On the other hand, Ethereum suffered withdrawals of 589 million dollars, which represents a significant proportion of 7.3% of its assets under management. In contrast, XRP defied the general market trend by attracting 89.3 million dollars in fresh capital. Likewise, short Bitcoin products continued to capture interest, adding 19 million dollars in weekly inflows as a hedge against volatility.
Signal of capitulation or an institutional buying opportunity amidst the correction?
This four-week selling streak marks one of the most severe periods for the sector since the 2018 bear market. CoinShares attributes these movements to a combination of profit-taking, macroeconomic uncertainty, and strategic shifts in institutional positioning. Furthermore, total assets under management have decreased by 36%, reflecting both the price drop and capital withdrawals. However, accumulated annual flows of 44.4 billion dollars suggest that long-term appetite for cryptocurrencies remains robust.
The United States led withdrawals regionally with 1.686 billion dollars, indicating significant “de-risking” by US institutions. However, emerging markets like Brazil and Australia showed resilience by recording modest inflows, signaling pockets of optimism outside major Western hubs. Thus, the divergence between massive selling and selective accumulation in assets like XRP could indicate smart capital rotation.
lthough the immediate outlook seems bleak, the recovery of positive flows on Friday could mark the beginning of a necessary stabilization. Investors will be watching to see if this buying trend holds in the coming sessions or if risk aversion persists. Finally, the behavior of short Bitcoin products will be key to measuring remaining bearish sentiment in the institutional market.
