Investors pulled $1.73 billion from digital asset funds, in what appears to be the heaviest outflows since mid-November 2025. The trend indicates that a bearish mood is building, much like during past declines.

Weak price action, fading expectations of near-term rate cuts, and disappointment that crypto hasn’t acted as a hedge against debasement appear to be important drivers, according to the latest edition of CoinShares’s Digital Asset Fund Flows Weekly Report.

Bitcoin Leads the Selloff

Bitcoin funds experienced heavy withdrawals of $1.09 billion in the past week, the strongest outflow since mid-November 2025. While short-Bitcoin products only gained a small $0.5 million, CoinShares explained that it still indicates that traders remain cautious and some are betting on further declines.

The numbers show sentiment has not meaningfully improved since the major sell-off on October 10, 2025. The bearish tone was also clear across other top assets. Ethereum saw $630 million in outflows, and XRP lost $18.2 million, amidst widespread market weakness. Sui also recorded $6 million in outflows during the same period. Solana, however, managed to buck the trend and brought in $17.1 million. Meanwhile, Binance, Chainlink, and Litecoin posted smaller inflows of $4.6 million, $3.8 million, and $0.3 million.

Regionally, the United States accounted for the biggest outflow, with $1.79 billion leaving in one week. Next up were Sweden and the Netherlands, which saw $11.1 million and $4.4 million leave digital asset-based investment products. Hong Kong followed suit with $2.6 million in withdrawals. Minor outflows were registered across several other countries, such as Brazil with $1.7, France with $0.9, and Italy with $0.1 million.

On the other hand, Canada recorded strong inflows of $33.5 million, Switzerland added $32.5 million, and Germany brought in $19.1 million.

Bearish Sentiment Tightens

Bitcoin is currently hovering over $88,000 but remains under strong bearish pressure. According to Petr Kozyakov, Mercuryo’s Co-Founder and CEO, the markets are in “risk-off” mode, with gold and silver surging as investors move into traditional safe-haven assets amid rising geopolitical risks. In a statement to CryptoPotato, Kozyakov revealed that both retail and institutional crypto investors remain on the defensive.

Additionally, retail-driven sectors that managed to captivate traders last year, especially meme coins, are seeing a dearth of activity, while institutional participation also retreats.

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