Crypto News: Digital Asset Fund Outflows Hit $446M as Investor Sentiment Remains Fragile

Digital asset investment products recorded $446 million in net outflows last week, extending a prolonged period of withdrawals and signaling that market sentiment has yet to fully recover following the sharp price shock in mid-October.According to the latest Digital Asset Fund Flows Weekly Report, cumulative outflows since the October 10 selloff have now reached $3.2 billion, underscoring continued caution among institutional investors despite relatively stable year-to-date (YTD) flow figures.Outflows Persist Despite Solid Year-to-Date InflowsWhile weekly flows remain negative, year-to-date inflows still stand at $46.3 billion, only slightly below the $48.7 billion recorded over the same period in 2024. This suggests that, on paper, capital allocation to digital assets remains historically strong.However, performance tells a different story. Total assets under management (AuM) are up just 10% YTD, indicating that once price declines and volatility are factored in, the average investor has seen little to no net benefit this year.This divergence between headline flows and realized outcomes highlights how persistent drawdowns have weighed on confidence, even as long-term capital commitments remain largely intact.U.S. Leads Outflows as Germany Emerges as a BuyerRegionally, outflows were broad-based, but the United States was the clear epicenter, recording $460 million in weekly withdrawals. Switzerland also posted modest outflows of $14.2 million.Germany stood out as the major exception.Germany attracted $35.7 million in inflows last weekTotal inflows into German-listed digital asset products now reach $248 million for the monthThe data suggests that German investors are selectively accumulating during periods of price weakness, contrasting with the more defensive posture seen among U.S. allocators.XRP and Solana ETFs Defy the TrendWhile most major digital assets continue to face selling pressure, XRP and Solana ETFs remain notable outliers.Last week:XRP products recorded $70.2 million in inflowsSolana products added $7.5 millionSince their mid-October ETF launches in the U.S., cumulative inflows have reached:$1.07 billion for XRP$1.34 billion for SolanaThese figures sharply contrast with the performance of more established assets and suggest investors are seeking differentiated exposure through newer ETF structures, rather than broad market beta.Bitcoin and Ethereum Continue to Bleed CapitalIn contrast, the two largest cryptocurrencies remain under pressure:Bitcoin products saw $443 million in weekly outflowsEthereum products lost $59.5 millionSince the launch of XRP and Solana ETFs:Bitcoin has recorded $2.8 billion in net outflowsEthereum has seen $1.6 billion in net outflowsThis pattern highlights a clear rotation within institutional crypto allocations, away from legacy assets and toward alternatives perceived to offer either structural growth or cleaner positioning.