Cryptocurrencies See Week 4 Out, But XRP and SOL Shine: CoinShares Report

Four consecutive weeks of crypto fund outflows hit $3.74 billion, but altcoins fared well as US investors retreated from the market.

Investment products linked to digital assets experienced their fourth consecutive week of outflows, recording $173 million and pushing the four-week cumulative loss to $3.74 billion. At the beginning of the week, revenue reached $575 million amid short expectations, but continued price weakness, resulting in $853 million in outflows shortly thereafter.

Sensors were a little calmer on Friday following soft CPI data, as these investment vehicles saw inflows of $105 million. Trading activity also cooled significantly, and ETP volumes fell to $27 billion, less than half of the record $63 billion seen last week.

Altcoin Appetite is on the rise

In the latest edition of the “Digital Asset Fund Flows Weekly Report,” CoinShares revealed that Bitcoin continued its emotional lull after seeing $133 million in outflows from asset-backed investment products. Short Bitcoin products also fell as combined losses reached $15.4 million over the past two weeks, a pattern often seen near cyclical declines, according to the asset manager.

Ethereum followed the same path after seeing $85.1 million withdrawn, while Hyperliquid recorded $1 million in losses. Multi-asset strategies also declined, as $14 million left the category. On the other hand, appetite remained strong for altcoin-focused investment products such as XRP, Solana, and Chainlink, which attracted $33.4 million, $31 million, and $1.1 million, respectively. Litecoin also gained $0.4 million.

Regional sentiment showed clear differences between US and international markets. While the US received $403 million in outflows, other states combined saw $230 million in new capital. Germany leads with $115 million, followed by Canada with $46.3 million and Switzerland with $36.8 million. Brazil added $14 million, Australia added nearly $10 million, and Sweden added $2.8 million during the same period.

A Predicted Fix?

Bitcoin has shed nearly 50% since its all-time high last October, causing market analysts to predict a lower price less than $50,000 before any reasonable recovery. Meanwhile, Hedy Wang, fintech veteran and founder of BlockStreet, believes that the current turmoil is a feature of a rising market rather than a fundamental collapse. In a statement to CryptoPotatoWang said,

“Unlike the speculative bubbles of the past, the current Web3 ecosystem is supported by strong and collaborative social ethics focused on long-term construction. Therefore, the analytical perspective suggests that the market is facing a natural, albeit volatile, phase of evolution, the data pointing to a recurring historical pattern instead of an unprecedented crisis.”