Digital Asset Funds Face Record Outflows of $6.4 Billion
Tony Kim Mar 17, 2025 03:30
Digital asset investment products experience a record outflow streak with $6.4 billion over five weeks, according to CoinShares. Bitcoin and Binance heavily impacted.
Digital asset investment products have encountered a severe downturn, marked by a record outflow streak totaling $6.4 billion over a five-week period, according to CoinShares. This streak, the worst on record, has seen investors pulling out funds consistently over 17 consecutive days, the longest since records began in 2015.
Bitcoin and Binance Among the Hardest Hit
Bitcoin (BTC) has been significantly affected, with $978 million in outflows last week alone. Over the past five weeks, Bitcoin's total outflows have reached $5.4 billion. This trend has been accompanied by a sell-off in short positions, which saw an additional $3.6 million withdrawn by investors.
Binance also faced a substantial setback as a seed investor's exit led to a drastic reduction in its assets under management (AuM), leaving just $15 million remaining.
Regional Focus and Other Cryptocurrencies
The United States has been the focal point of these outflows, contributing $1.16 billion, which accounts for 93% of the total during this period. Switzerland experienced $528 million in outflows due to a seed investor's exit, while Germany registered a minor inflow of $8 million.
Among other cryptocurrencies, Ethereum (ETH) and Solana (SOL) saw outflows of $175 million and $2.2 million, respectively. In contrast, XRP defied the trend by attracting $1.8 million in inflows. Blockchain equities were not spared either, as they recorded a $40 million outflow last week.
Market Outlook Amidst Declining AuM
Despite the negative sentiment, year-to-date inflows remain positive at $912 million. However, the continued price corrections and sustained outflows have led to a $48 billion decline in total assets under management. The market awaits stabilization as it processes these significant shifts.
For more detailed insights, visit the CoinShares blog.
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