Crypto Funds Shed $4B Across Five-Week Negative Streak

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Decrypt
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6 hours ago

Digital asset investment products logged their fifth consecutive week of outflows, extending a selloff that has now erased $4 billion from the sector amid widespread investor disinterest and macro uncertainty.


Crypto funds saw $288 million in net outflows last week, bringing the five-week total to approximately $4 billion, according to a CoinShares report published Monday. Trading volumes plunged to $17 billion—the lowest level since July 2025—underscoring waning interest even as prices stabilized following Bitcoin's recent drop below $65,000.



The sustained outflows test whether institutional appetite for crypto exposure is cooling structurally or simply pausing until macro signals turn decisively positive—with global investors divided on the answer.


A global divide


Regional divergence remains pronounced.


The U.S. accounted for $347 million in outflows, while Europe and Canada recorded $59 million in inflows, suggesting international investors view the recent price weakness as a buying opportunity. Switzerland, Canada, and Germany led the dip-buying with $19.5 million, $16.8 million, and $16.2 million in inflows, respectively.


This behavior among European investors is consistent with that of previous weeks, as noted in a previous Decrypt report.


Bitcoin drove the bulk of the negative sentiment, suffering $215 million in outflows last week—a trend that has persisted through previous weeks.


The selling reveals a strategic shift that can be seen in Bitcoin traders increasing leverage even as the leading crypto remains rangebound, and in Bitcoin accounting for more than 40% of the $500 million in total liquidations seen Monday.


Despite this, short-Bitcoin investment products saw renewed interest with $5.5 million in inflows—the largest of any asset—signaling that some traders are positioning for further downside.


Crypto assets remain "firmly anchored at the far end of the risk curve," moving in lockstep with broader risk sentiment rather than acting as safe havens, Tim Sun, senior researcher at HashKey Group, previously told Decrypt.


Ethereum saw the second-largest outflows at $36.5 million, while multi-asset products and Tron bled $32.5 million and $18.9 million, respectively. Select altcoins bucked the trend with minor inflows—XRP added $3.5 million, Solana $3.3 million, and Chainlink $1.2 million—but not enough to offset the broader altcoin exodus.


The sustained outflows and tumbling trading volumes reflect growing investor apathy, with sidelined capital waiting for clearer catalysts. As Sun observed, "increased uncertainty has dampened the willingness of 'sidelined' capital to enter the market," adding that without sustained liquidity support, "any periodic bounces are more likely to be technical recoveries rather than trend reversals."


The bearish sentiment is reflected in prediction market Myriad, owned by Decrypt's parent company Dastan, where users have assigned a probability of over 60% that Bitcoin, Ethereum, Hyperliquid, and Solana's next major move will be to the downside.





Myriad predictors see a 61% chance of Bitcoin falling to $55,000, while Ethereum is assigned a 73% likelihood of dropping to $1,500. Hyperliquid bears are even more confident, pricing in a 90% chance of a dump to $29, and Solana traders see a 64% probability of a decline to $40.


With rate-cut expectations pushed out, inflation remaining sticky, and geopolitical tensions simmering, the five-week outflow streak appears unlikely to reverse in the short-term.


For the streak to break, macro signals may need to shift first, improving the broader risk environment.


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