Digital Asset Products See First Outflow in Five Weeks Amid Macro Pressures

TLDR:

• Digital asset investment products recorded $414M in outflows, the first in five weeks, as AuM fell to $129B.
• Ethereum saw $222M in weekly outflows, pushing its YTD net flow to a negative $273M, the worst among all assets.
• Bitcoin posted $194M in outflows but held a strong YTD net inflow position of $964M, showing resilience.
• XRP bucked the trend with $15.8M in inflows, while Germany and Canada bought the dip with combined $37M.

Digital asset investment products recorded $414 million in outflows last week. This marked the first weekly outflow in five weeks. Iran conflict fears and shifting FOMC rate expectations drove investor caution.

Total assets under management declined to $129 billion. That level was last seen in early February. It is broadly comparable to April 2025, during the early Trump tariff phase. Ethereum bore the worst of the sell-off, while Bitcoin maintained its year-to-date gains.

U.S. Leads Outflows as Global Sentiment Diverges

The United States was the primary source of negative sentiment last week. U.S.-based investors pulled $445 million from digital asset products.

Switzerland also saw minor outflows, totalling $4 million for the week. Together, these two markets drove the bulk of the weekly total.

However, not all regions reacted with the same concern. German investors treated the recent price weakness as a buying opportunity.

Germany recorded inflows of $21.2 million during the same period. Canadian investors followed suit, adding $15.9 million in net inflows.

The FOMC shift played a notable role in the overall market reaction. June rate expectations moved from anticipated cuts to expected rate hikes.

That shift brought inflation concerns back to the forefront for U.S. investors. Higher rates traditionally weigh on risk assets, and digital assets were no exception.

The Iran conflict also added sustained pressure on investor confidence. The drawn-out nature of the situation kept uncertainty at elevated levels.

Macro headwinds from geopolitics and monetary policy converged during the week. That combination pushed AuM down to levels not seen since early February.

Ethereum Faces Pressure While XRP Bucks the Trend

Ethereum recorded the largest outflows among all digital assets last week. The asset saw $222 million leave investment products within a single week.

That move pushed Ethereum’s year-to-date net flows to negative $273 million. This is the worst YTD flow performance of any tracked digital asset.

James Butterfill, Head of Research at CoinShares, pointed to the Clarity Act as a likely driver. The legislation introduced fresh regulatory uncertainty around Ethereum’s classification.

That uncertainty translated into visible selling pressure across Ethereum-focused funds. Investor sentiment around the asset turned cautious as a result.

Bitcoin also saw outflows, totalling $194 million for the reporting week. Yet, Bitcoin maintained a net inflow position of $964 million year-to-date.

Short-Bitcoin products attracted a further $4 million in inflows. Solana also suffered, recording outflows of $12.3 million over the same period.

XRP stood apart from the broader negative trend. The asset attracted $15.8 million in inflows during the week. That made XRP one of the few assets to register positive flows. The result came against a backdrop of broad market caution and risk-off sentiment.

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