Cryptocurrency Funds Suffer Another Week of Redemptions

The cryptocurrency market continues to struggle with investor fatigue, as indicated by the latest data on digital asset fund flows.

According to CoinShares' Digital Asset Fund Flows Weekly Report, $288 million in weekly outflows marks the fifth consecutive week of redemptions. This has propelled aggregate withdrawals to $4 billion, which is still lower than the $6 billion logged last year.

Market participation has thinned significantly, with ETP trading at a seven-year low of $17 billion, amidst signs of disengagement among institutions and retail allocators globally this quarter.

The report also highlights that Bitcoin remains the primary drag on market sentiment, shedding $215 million. Additionally, bearish positioning intensified as short-bitcoin funds absorbed $5.5 million, which is the highest inflow among individual assets.

Ethereum also experienced notable withdrawals of $36.5 million, joined by continued selling in multi-asset products and Tron, which lost $32.5 million and $18.9 million, respectively.

While XRP, Solana, and Chainlink attracted limited inflows ranging between $1.2 million and $3.5 million, these gains did little to offset persistent net outflows across altcoins.