Investor Flight Continues: Crypto Products Bleed $1.7bn, Wiping 2025 Gains

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For the second consecutive week, digital asset investment products faced significant outflows, amounting to $1.7 billion.

The exodus has completely reversed earlier 2025 inflows, resulting in a net YTD loss of $1 billion and reflecting a severe deterioration in market sentiment.

This shift is driven by a triad of pressures: a more hawkish US Federal Reserve leadership, continued strategic selling by large-scale investors, and rising geopolitical tensions. Overall AuM has plummeted by $73 billion since the market high in October 2025.

The outflows were concentrated in the US ($1.65 billion), with Canada and Sweden also seeing red. Germany and Switzerland registered minimal inflows, providing little counterbalance.

Bitcoin bore the brunt with $1.32 billion in outflows, and Ethereum followed with $308 million. Even recent favourites XRP and Solana were not spared. Notably, products allowing investors to bet against Bitcoin (Short Bitcoin) gathered inflows, suggesting targeted bearish positioning. The sole sectoral bright spot was “Hype” products, which gained $15.5 million amid a surge of interest in tokenized precious metals.