Crypto Funds Bleed $1.43B in Historic March-Style Exodus

Digital asset funds just got rocked by their biggest weekly outflow since March—a staggering $1.43 billion hemorrhage that's shaking confidence across the board.

Where the Money's Moving

Institutions aren't just pulling out—they're fleeing en masse. Bitcoin ETFs took the hardest hit, shedding nearly $1.2 billion in just seven days. Even altcoins couldn't escape the carnage.

Timing the Tumble

The sell-off coincides with cooling inflation data and renewed Fed hawkishness. Traders are locking in profits after Q2’s blistering rally—classic 'buy the rumor, sell the news' behavior, but on steroids.

Silver Linings or Dead Cat Bounces?

Not every coin bled out. Solana and Litecoin funds saw minor inflows, suggesting some investors are bargain-hunting amid the panic. Still, it’s a drop in the ocean compared to the broader outflow.

Wall Street’s 'Risk-Off' Fever

When traditional markets flinch, crypto still gets the flu. This outflow mirrors a broader flight to safety—because nothing says 'safe haven' like yanking $1.43 billion from the volatile digital asset class. Maybe they’ll pivot back when the next FOMO cycle hits. Until then? Welcome to crypto—where the only constant is leverage-induced whiplash.

Ethereum Outperforms Bitcoin

In the latest edition of “Digital Asset Fund Flows Weekly Report,” CoinShares revealed that investor behavior showed a clearer tilt toward ethereum compared to Bitcoin during the recent market turbulence. Ethereum staged a strong recovery mid-week and restricted outflows to $440 million, far below Bitcoin’s $1 billion decline.

On a month-to-date basis, Ethereum recorded inflows of $2.5 billion, while Bitcoin remains in negative territory with $1 billion in net outflows. Year-to-date, Ethereum inflows represent 26% of total assets under management, compared with Bitcoin’s 11%.

Investor activity favored several altcoins this past week, with XRP leading at $25 million in inflows. Solana and Cronos also gained $12 million and $4.4 million in inflows, respectively. Next up was Cardano with $2.9 million, followed by chainlink with $2.1 million. Litecoin also attracted a minor inflow of $0.3 million over the past week.

Sui and Ton, on the other hand, suffered the most with outflows of $12.9 million and $1.5 million, respectively. Multi-asset products also witnessed $0.6 million in outflows.

Regional Divergence

Regionally, the United States experienced the largest outflows, with $1.31 billion over the past week, while Sweden and Switzerland recorded $135 billion and $11.8 billion in withdrawals, respectively. Several other countries, however, saw modest inflows.

Germany, for one, led with $18.4 million in inflows, followed by Canada with $3.7 million and Australia with $3.5 million. Hong Kong contributed $2.6 million, while Brazil also attracted $1 million in inflows during the same period.