Digital Assets Lose $73B From October 2025 Peak, CoinShares Finds

Short Bitcoin funds attracted $14.5 million in inflows as investors hedged against bullish prices.

Investors pulled $1.7 billion into digital asset investment products this past week. This reversed year-to-date gains and left outflows totaling $1 billion globally. CoinShares said the decline reflects weak investor confidence, influenced by a hawkish US Federal Reserve Chairman, continued sell-off in crypto whales linked to a four-year cycle, and rising country risks.

As of October 2025, when prices peaked, assets under digital asset management fell by $73 billion, amid a sharp decline in market demand for the sector.

Bitcoin Leads Biggest Exodus

According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, investor sentiment was overwhelmingly negative across all digital assets. Bitcoin, alone, experienced $1.32 billion in outflows, Ethereum $308 million, XRP $43.7 million, and Solana $31.7 million. Meanwhile, Sui and Litecoin had a small outflow of $1.2 million and $0.2 million.

Bitcoin short funds saw inflows of $14.5 million, increasing their year-to-date AUM by 8.1%. Most commodity funds also saw withdrawals of $13.5 million. Chainlink stood out as an exception after earning $0.5 million in revenue.

During the wide release, CoinShares found that hype investment products have earned $15.5 million, due to strong on-chain demand for tokenized precious metals.

The mood was not very good across the regions. The US had $1.65 billion in outflows, while Canada and Sweden saw outflows of $37.3 million and $18.9 million. Smaller withdrawals came from the Netherlands, France and New Zealand. On the other hand, Switzerland and Germany attracted an entry of $ 11 million and $ 4.3 million, while Brazil, Australia, and Italy saw small gains.

High Demand for Low Protection

Bitcoin broke below the support level of $80,000 and briefly touched $74,500, while ETH also fell under pressure shortly after the announcement of Kevin Warsh as the next Chairman of the US Federal Reserve. The move resulted in the liquidation of more than $2.5 billion in active long positions, an already negative sentiment stemming from ongoing ETF outflows. This left Bitcoin with its fourth consecutive monthly decline, and markets are generally cautious.

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QCP Capital said $74,500 is an important level because it coincides with the 2025 cyclical decline. The options markets show that investors remain cautious, and there is a greater need to hedge low than to bet high.

However, the need for protection is not as extreme as in previous stress episodes, which may mean that some investors may be setting a potential near-term base. QCP observed that although the price appears to be stable, the momentum is still weak, and the upside is limited, leaving Bitcoin vulnerable to further liquidation.

According to QCP, a drop below $74,000 could make BTC continue lower, with the potential to test its previous trading area of ​​2024. On the other hand, a pullback above $80,000 could ease short-term pressure, stabilize options markets, and ease volatility. Key factors to watch include institutional leverage, geopolitical risk, and Fed communications.