Crypto Fund Outflows Decelerate Sharply, Signaling Potential Sentiment Inflection

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Digital asset investment products experienced a significant deceleration in outflows last week, totaling $187 million. Historically, while flows correlate with price movements, shifts in the pace of outflows are a more reliable indicator, often marking turning points in market sentiment. This slowdown suggests a potential nadir may have been reached.

A recent price correction drove total assets under management (AuM) down to $129.8 billion, the lowest level since March 2025. Despite the decline in AuM, trading activity surged to a record weekly high, with ETP volumes hitting $63.1 billion.

Regionally, inflows were recorded in Germany ($87.1m), Switzerland ($30.1m), Canada ($21.4m), and Brazil ($16.7m). Bitcoin was the sole major asset with sustained outflows ($264m), while XRP ($63.1m), Solana ($8.2m), and Ethereum ($5.3m) attracted capital. XRP remains the year-to-date leader, with total inflows of $109 million.