Investors withdrew $3.74 billion from crypto funds
The scale of outflows from funds has now decreased compared to peak levels. In early February, a record $1.7 billion was withdrawn in a single week; losses have now fallen to $187 million. Selling pressure has eased but not stopped: the market is undergoing a prolonged correction, analysts at CoinShares explained.
U.S. investors withdrew a total of $403 million over the week. In other regions of the world, by contrast, analysts recorded a combined inflow of $230 million. The strongest interest came from investors in Germany ($115 million), Canada ($46.3 million), and Switzerland ($36.8 million). This indicates a redistribution of demand, CoinShares noted: investors outside the U.S. maintain interest in crypto funds, while Americans are actively reducing their positions amid the crypto market downturn.
Among individual assets, the largest outflows were recorded in financial products linked to Bitcoin, which saw $133 million withdrawn. Ethereum-focused funds experienced $85.1 million in outflows. CoinShares experts highlighted a notable development: outflows from short products (which bet on price declines) surged to $15.4 million over two weeks. Such investor behavior is often observed near market bottoms, analysts say.
Some altcoins managed to attract capital despite overall investor caution. XRP funds recorded inflows of $33.4 million, Solana funds saw $31 million, and Chainlink funds attracted $1.1 million.
A bullish trend in the cryptocurrency market will arrive later than most expect, according to investor and co-founder of Morgan Creek Digital Anthony Pompliano. He promised increased Bitcoin volatility but did not specify when it would begin or how long it would last.
See also: "Bitcoin falls to $68K amid four consecutive weeks of losses"
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