$3.74 Billion Gone in Four Weeks
Digital asset investment products recorded $173 million in net outflows last week, according to CoinShares' latest weekly fund flows report. That marks the fourth consecutive week of withdrawals, bringing the cumulative total to $3.74 billion since mid-January.
The headline number looks grim. But drilling into the data reveals something more complex than a simple investor exodus. Regional divergence, altcoin resilience, and a classic contrarian signal in short Bitcoin products all suggest the market is going through a rotation, not a wholesale retreat.
Both The Block and Cointelegraph flagged the report within minutes of its release, underscoring the significance of the trend.
The US Is Pulling Back While Europe Leans In
The most striking feature of this week's data is not the total outflow figure. It is the geographic split.
US-based investors withdrew $403 million, accounting for far more than the net $173 million global outflow. That means the rest of the world was a net buyer by a wide margin.
Germany led the counter-trend with $115 million in fresh inflows. Canada added $46.3 million. Switzerland contributed $36.8 million. Combined, these three markets pushed $230 million into crypto products while American investors headed for the exits.
This divergence has been building for weeks. European crypto card users and institutional allocators appear less spooked by Bitcoin's 52% drawdown from its October 2025 all-time high, possibly because the regulatory environment in the EU has matured significantly since MiCA took full effect. For European cardholders in particular, the willingness of German institutions to buy the dip is a signal that regional conviction remains intact.
Bitcoin and Ethereum Bear the Brunt
Bitcoin ETPs saw $133 million in outflows last week, with total Bitcoin assets under management declining to roughly $106 billion. US spot Bitcoin ETFs alone bled approximately $360 million.
Ethereum was not spared either, with $85.1 million in weekly outflows. US spot Ether ETFs did manage a modest $10 million in net inflows, but it was not enough to offset selling pressure elsewhere.
The combined $218 million in BTC and ETH outflows means the two largest digital assets absorbed essentially all the selling pressure, and then some. The net global figure was pulled down to just $173 million because other assets attracted fresh capital.
Total assets under management across all crypto ETPs fell to approximately $133 billion, the lowest level since April 2025, when tariff-driven macro fears triggered a broader risk asset selloff.
XRP and Solana Keep Defying the Trend
For the fourth straight week, XRP and Solana products attracted meaningful inflows while Bitcoin and Ethereum bled.
XRP ETPs added $33.4 million, extending their year-to-date total to over $109 million. That makes XRP the most successful asset category in 2026 by net flows, a remarkable position for an altcoin that spent years in regulatory limbo.
Solana products pulled in $31 million, consistent with a broader institutional warming toward SOL that has been building since the first spot Solana ETF staking rewards were paid out earlier this month.
Chainlink also attracted inflows, though CoinShares did not provide a specific figure.
The rotation pattern is clear: institutional capital is not leaving crypto entirely. It is shifting from large-cap exposure into altcoins that investors perceive as having stronger near-term catalysts. For cardholders earning cashback rewards in XRP or SOL, this trend is directly relevant to the value of their accumulated rewards.
The Contrarian Signal Hiding in the Data
One of the most under-discussed data points in the CoinShares report is the outflow from short Bitcoin products. Over the past two weeks, $15.4 million has exited inverse BTC ETPs.
This matters because short product outflows at market lows have historically been a contrarian indicator. When bearish bets are being unwound even as prices remain depressed, it often signals that the most aggressive sellers have already positioned and the marginal move is likely upward. CoinShares' head of research James Butterfill has previously noted that "changes in the pace of outflows have historically been more informative, often signaling inflection points in investor sentiment."
The intra-week dynamics reinforce this read. The week began with $575 million in inflows on Monday and Tuesday. Sentiment reversed sharply midweek with $853 million in outflows as prices continued to slide. But Friday saw a $105 million recovery following weaker-than-expected US CPI data, suggesting macro-sensitive capital is still watching for entry points.
Trading volumes also tell a story. ETP volumes hit $27 billion last week, down from the record $63.1 billion the prior week. The volume compression alongside slower outflows is a classic pattern of selling exhaustion.
What This Means for Crypto Cardholders and Spending
Prolonged institutional outflows create a challenging environment for anyone whose spending power is denominated in crypto. For users of crypto-backed credit cards like Nexo or Avici, Bitcoin's decline from $120,000 to the $65,000-$70,000 range means collateral ratios are under pressure, potentially triggering margin calls or reducing available credit lines.
For staking-based reward cards, the four-week outflow streak creates indirect headwinds. Lower prices mean lower dollar-denominated staking yields even if the percentage APY remains stable.
On the flip side, the altcoin rotation into XRP and Solana is a tailwind for cardholders earning rewards in those tokens. If institutional flows continue favoring SOL and XRP while BTC stagnates, the real purchasing power of altcoin rewards could outperform Bitcoin rewards over the near term.
Standard Chartered analysts added fuel to the bearish fire last week by cutting their 2026 Bitcoin price target from $150,000 to $100,000, with a warning that BTC could dip to $50,000 before recovering. That kind of institutional price target revision matters because it shapes the allocation decisions that drive the very fund flows CoinShares tracks.
FAQ
How much has left crypto funds in the past four weeks? CoinShares reports $3.74 billion in cumulative net outflows from digital asset investment products over four consecutive weeks, with the most recent week seeing $173 million in withdrawals.
Why are US investors pulling out while Europe buys? The US accounted for $403 million in outflows last week, while Germany ($115M), Canada ($46.3M), and Switzerland ($36.8M) collectively added $230 million. The divergence likely reflects different regulatory environments, risk appetites, and the stronger impact of US macro uncertainty on American allocators.
Which crypto assets are still attracting inflows? XRP led with $33.4 million in weekly inflows and $109 million year-to-date. Solana added $31 million, and Chainlink also attracted positive flows. Bitcoin and Ethereum absorbed the vast majority of selling pressure.
What do short Bitcoin product outflows signal? When investors close out bearish bets (short products) even as prices remain low, it often indicates the most aggressive sellers have already exited. Historically, this pattern has preceded market inflection points.
Overview
Crypto investment products have now bled for four straight weeks, with $3.74 billion in cumulative outflows according to CoinShares' latest weekly data. But the aggregate number masks a more nuanced reality: US investors are retreating ($403M in weekly outflows) while European markets are buying ($230M in combined inflows from Germany, Canada, and Switzerland). Bitcoin and Ethereum bore the brunt of the selling at $133M and $85M respectively, while XRP ($33.4M) and Solana ($31M) continued attracting capital. The unwinding of short Bitcoin positions ($15.4M over two weeks) and a late-week recovery following weaker CPI data suggest selling pressure may be nearing exhaustion. Total crypto ETP assets under management fell to $133 billion, the lowest since April 2025, but the rotation into altcoins and the regional divergence point to a market that is repositioning rather than capitulating.
Recommended Reading
- SOL and XRP ETFs Attract Inflows While Bitcoin and Ethereum Funds Bleed $838 Million in a Single Week
- Bitcoin Has Lost Half Its Value Since October and VanEck Says Five Forces Are to Blame
- Harvard Trims Its Bitcoin ETF by 21% and Opens a First-Ever $87 Million Ethereum Position
