- Crypto funds saw $288 million in outflows last week, led by Bitcoin.
- $XRP, Solana, and Chainlink saw minor inflows.
- Crypto market crash and rising geopolitical tensions contribute to the negative sentiment.
Crypto funds are under pressure, with $288 million pulled out last week, continuing a five-week streak of declines. Overall trading activity also slowed sharply, dropping to $17 billion, marking the lowest level since July 2025.
Most of the withdrawals came from the US, which saw $347 million exit crypto products, while Europe and Canada recorded small inflows of $59 million. Bitcoin led the losses with $215 million in outflows, and Ethereum followed with a $36.5 million loss.
Digital Asset Giants Face Heavy Crypto Fund Outflows
According to CoinShares’ weekly report, digital asset investment products continue to struggle. Over the past week, crypto funds saw $288 million leave the market. This marks the fifth week in a row of outflows, bringing the total withdrawals over this period to $4 billion.
Trading volumes also fell sharply to $17 billion. This marks the lowest since July 2025, underscoring the cautious approach of investors amid the current crypto market decline. Last week, as CryptoNewsZ reported, the crypto funds faced $173 million in outflows.
It is worth noting that the US saw the biggest withdrawals, with $347 million flowing out of crypto funds. Hong Kong witnessed $1.9 million in crypto funds flowing out of the market. At the same time, Europe and Canada recorded a smaller inflow of $59 million. Switzerland also saw $19.5 million in inflows, showing diverse investor sentiment across countries. While Americans are staying on the sidelines, other international investors are taking advantage of the market dip.
Significantly, Bitcoin was the largest weekly loser, with about $215 million moved out of wallets. This was followed by Ethereum, which lost about $36.5 million last week. Other smaller altcoins together saw nearly $50 million in negative flows.
Meanwhile, short-BTC products gained some popularity as they generated $5.5 million in inflows, while the major altcoins like $XRP, Solana, and Chainlink received inflows of $3.5 million, $3.3 million, and $1.2 million, respectively. However, these inflows did not succeed in reversing the total financial losses that the market has experienced.
Key Reasons Behind the Surging Outflows
Notably, the recent weekly outflows from crypto funds are driven by several key factors. These include the broader negative sentiment in the crypto market and rising geopolitical tensions.
Crypto Market Crash
Currently, the crypto market is experiencing a harsh time, as major cryptocurrencies face huge losses. Top assets like Bitcoin, Ethereum, and $XRP have fallen significantly, sparking wider investor caution.
As of press time, the global crypto market cap has plummeted by 2.38%, reaching $2.28 trillion. Bitcoin is trading at $66,286, down by 2.8% in a day and 3.7% in a week. Ethereum is now valued at $1,915, marking drops of 3.23% and 2.75% in a day and week, respectively.
Rising Geopolitical Tensions
Another major factor contributing to the outflow from crypto funds is the US-Iran war. The geopolitical tension has further intensified on reports of a possible military attack from the US against Iran. Former CIA officer John Kiriakou revealed that the US might have already prepared to launch the military action.
In addition, US President Donald Trump announced that the global tariff rate will increase from 10% to 15%. This comes just a day after introducing the 10% rate. It is also worth noting that the decision comes just after the Supreme Court ruled that Trump’s earlier tariffs under IEEPA were illegal.
