Massive outflow of investments
in cryptocurrency funds totals US$ 795 million in the week and nullifies year-to-date gains
The digital asset and cryptocurrency market is facing a wave of significant outflows, with investment products (ETPs, ETFs, and other types of funds) recording a total of US$ 795 million in withdrawals in the past week, according to the weekly survey by CoinShares.
As a result, this marks the third consecutive week of decline and raises the total outflows since the beginning of February to alarming US$ 7.2 billion — practically nullifying the gains accumulated in the year to date.
The data shows that bitcoin (BTC) led the recent capital withdrawals, with US$ 751 million in outflows in the last week. Despite this, the asset still maintains a positive balance for the year, with accumulated investments of US$ 545 million. Ethereum (ETH) followed the negative trend, with withdrawals of US$ 37.6 million.
The wave of negative sentiment, which has intensified since early February and has practically erased the accumulated inflows for the year, has come alongside market volatility, heightened by discussions about trade tariffs from the United States against various countries around the world.
A moment of caution for cryptocurrencies
“Despite the recent recovery, the massive outflow of capital reflects widespread caution among investors,” states the CoinShares report. “Regulatory uncertainty and macroeconomic concerns continue to influence the digital asset market.”
Amid this downward trend, some altcoins — alternative cryptocurrencies — challenged the overall movement.
For example, XRP (XRP) led the inflows with US$ 3.5 million, followed by more modest gains in Ondo (ONDO), Algorand (ALGO), and Avalanche (AVAX), with inflows of US$ 46 million, US$ 25 thousand, and US$ 25 thousand, respectively.