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Why Did $147M Flee Crypto Funds Last Week? | Decoding the Sudden Shift in Digital Asset Investments

Recent findings from digital asset manager CoinShares paint a striking picture of shifting investor behavior,XRP price Prediction 2025 with global crypto funds witnessing $147 million in net outflows last week. This abrupt reversal snapped a three-week inflow streak that had seen nearly $2 billion enter the market.

The outflow wave disproportionately impacted Bitcoin-focused products, which hemorrhaged $159 million. Interestingly, short-Bitcoin instruments captured $2.8 million in inflows, suggesting some traders are positioning for continued downside. Ethereum products similarly resumed their outflow trend after a brief respite, shedding $28.9 million amid what CoinShares Research Head James Butterfill describes as "tepid" investor enthusiasm.

Against this backdrop, multi-asset crypto funds emerged as the unlikely success story, attracting $29.4 million for their 16th consecutive week of inflows. These diversified vehicles have now amassed $431 million since June, currently representing about 10% of crypto fund assets under management globally.

Geographically, the outflows concentrated in three key markets: US-based funds bled $209 million, while German and Hong Kong products lost $8.3 million and $7.3 million respectively. These losses were partially mitigated by inflows into Canadian ($43M) and Swiss ($34.9M) investment vehicles.

Butterfill attributes the sudden sentiment shift to unexpectedly strong economic indicators that reduced expectations for aggressive interest rate cuts. "The probability recalibration for monetary policy appears to have triggered this risk-off move among crypto investors," the report suggests. Despite the outflows, exchange-traded crypto product volumes actually climbed 15% to $10 billion weekly, contrasting with declining activity across broader cryptocurrency markets.

This development underscores how traditional macroeconomic forces continue to exert significant influence over digital asset markets. The divergent performance between single-asset and multi-asset products further highlights evolving investor strategies in navigating crypto market volatility.