tl;dr
Last week, the crypto market experienced a significant sell-off, with $3.8 billion in outflows. The US saw major outflows from Bitcoin products, with BlackRock, Fidelity, and Grayscale facing significant withdrawals. Other countries also experienced outflows, except for Germany, which attracted $55....
Last week, the crypto market experienced a significant sell-off, with $3.8 billion in outflows. The US saw major outflows from Bitcoin products, with BlackRock, Fidelity, and Grayscale facing significant withdrawals. Other countries also experienced outflows, except for Germany, which attracted $55.3 million.
Ethereum, TON, Solana, and blockchain equities ETPs faced outflows, but Sui and XRP defied the trend, attracting $15.5 million and $5 million in inflows, respectively.
Last week, the crypto market witnessed its most significant weekly sell-off, with outflows hitting a record $2.9 billion, according to CoinShares' latest weekly report. This marked the third consecutive week of capital exiting digital asset investment products, bringing total outflows to $3.8 billion. CoinShares' Head of Research, James Butterfill, pointed out multiple reasons for the downturn.
Investors pulled $2.87 billion from US-based funds, dealing a significant blow to major spot Bitcoin exchange-traded fund (ETF) issuers. CoinShares reported that BlackRock recorded $1.3 billion in withdrawals, while Fidelity lost over $569 million. Grayscale also faced steep exits, with $421 million leaving its funds.
Outside the US, Switzerland and Canada saw net outflows of $73 million and $16.9 million, respectively. Germany, however, bucked the trend, attracting $55.3 million as investors maintained a bullish outlook. Meanwhile, Bitcoin's decline to a three-month low below $80,000 triggered a modest rise in short Bitcoin product inflows, which reached $2.3 million.
Ethereum, the second-largest digital asset by market capitalization, also faced a sharp sell-off, registering record weekly outflows of $300 million. Investment products in other digital assets, such as TON and Solana, also struggled, shedding $22.6 million and $7.4 million, respectively. Additionally, blockchain equities ETPs didn't escape the negative sentiment, seeing $25.3 million outflows.
However, despite the widespread sell-off, some assets attracted fresh capital. Sui led inflow, securing $15.5 million. XRP followed with a $5 million inflow, fueled by the continued speculation over a potential US spot XRP ETF and the belief that the digital asset is well-positioned for regulatory clarity under the Donald Trump administration.