Digital Asset Funds Face $508M Outflows Amid Economic Uncertainty
Digital asset investment products have witnessed significant outflows totaling $508 million, as investors grapple with uncertainties surrounding US trade tariffs and monetary policy. This trend follows the inauguration of the new US President, prompting caution among investors, according to a report from CoinShares.
Bitcoin Leads Outflows
Bitcoin (BTC) was notably affected, experiencing outflows of $571 million. The report highlights that some investors are opting to increase their short positions on Bitcoin, resulting in $2.8 million inflows into short-Bitcoin products. This marks a continuation of the cautious sentiment that has pervaded the market since the presidential transition.
XRP and Altcoins Attract Inflows
While Bitcoin faced substantial outflows, altcoins, particularly XRP, have continued to attract investor interest. XRP saw inflows of $38.3 million, bringing its total inflows since mid-November 2025 to $819 million. Investor optimism seems to stem from hopes that the ongoing SEC lawsuit against XRP might be resolved favorably. Other altcoins such as Solana, Ethereum, and Sui also recorded inflows of $8.9 million, $3.7 million, and $1.47 million, respectively.
Regional Disparities in Fund Flows
The report notes a regional disparity in fund flows, with the United States experiencing outflows of $560 million. In contrast, European markets, particularly Germany and Switzerland, continued to see healthy inflows, recording $30.5 million and $15.8 million, respectively. This divergence highlights differing investor sentiments across regions amid global economic uncertainties.
Overall, the digital asset market has faced outflows totaling $924 million over the past two weeks, following an 18-week period of inflows amounting to $29 billion. Trading turnover has also decreased significantly, dropping from $22 billion to $13 billion in the past week, further indicating a cautious market sentiment.
For more details, visit the full report on CoinShares.
