Crypto Investment Products Experience $508 Million Outflow Amid US Policy Uncertainty
Cryptocurrency investment products experienced outflows of $508 million last week, following $415 million the previous week, totaling $924 million over two weeks, according to CoinShares.
Key factors include:
- Market instability linked to US economic policy uncertainty post-presidential inauguration.
- Concerns about trade tariffs, inflation, and monetary policy impacting investor sentiment.
James Butterfill from CoinShares stated that caution among investors drives these outflows.
Bitcoin Takes the Hardest Hit
Bitcoin faced significant selling pressure with outflows of $571 million, while short-Bitcoin positions attracted $2.8 million, indicating bearish sentiment. In contrast, altcoins saw net inflows:
- XRP: $38.3 million inflows, totaling $819 million since mid-November 2025.
- Solana: $8.9 million inflows.
- Ethereum: $3.7 million inflows.
- Sui: $1.47 million inflows.
US Market Bears the Load while Europe Sees Growth
The US market recorded $560 million in outflows, while Europe showed resilience with inflows, particularly in Germany ($30.5 million) and Switzerland ($15.8 million).
Trading turnover declined sharply from $22 billion to $13 billion, reflecting reduced liquidity and increased market volatility.