Bitcoin at the Center of Crypto Exodus with 94% of $795M Outflows

• Bitcoin investment funds saw $751 million in outflows last week, making up 94% of the $795 million total withdrawn from crypto funds, amid a broader trend of declining investor sentiment since February.
• Despite a late-week recovery in prices and continued positive year-to-date inflows for some assets like XRP, total crypto fund inflows for 2025 have now dropped to just $165 million.

The crypto market witnessed a significant setback last week as investors pulled $795 million from digital asset investment products — with Bitcoin alone accounting for a staggering $751 million of those outflows. According to CoinShares, this marks the third consecutive week of withdrawals, driving total outflows to $7.2 billion since early February.

Bitcoin Dominates the Outflows

Bitcoin was by far the hardest hit, with its $751 million in outflows representing 94% of the total. This massive single-week retreat comes despite Bitcoin maintaining a positive year-to-date inflow of $545 million. However, sentiment around the asset has clearly turned cautious. Over the past month alone, Bitcoin has shed $890 million in investments, raising red flags about investor confidence.

Ethereum also suffered outflows of $37.6 million, while Solana, Cardano, Sui, Litecoin, and Short Bitcoin products saw smaller but still notable capital withdrawals.

XRP and Multi-Asset Funds Buck the Trend

Not all digital assets faced redemptions. XRP led the minority of gainers, pulling in $3.45 million in inflows. Multi-asset funds also managed to attract $1.05 million, while Ondo, Algorand, and Avalanche each drew modest investments.

This divergence highlights a shift in investor focus toward altcoins and diversified products, possibly reflecting growing skepticism around Bitcoin’s short-term trajectory.

U.S. at the Center of the Storm

The outflows were heavily concentrated in the United States, which accounted for 96% of the weekly total — or $763 million. Switzerland, Hong Kong, Sweden, and Germany saw comparatively smaller outflows, while Canada, Brazil, and Australia registered modest inflows, offering a glimpse of regional divergence in sentiment.

The broader market context has been shaped by policy-related headwinds, with CoinShares attributing part of the pressure to recent tariff developments. Still, a late-week recovery in crypto prices helped lift total assets under management back to $130 billion — up from a low earlier in the week.

Despite the recent turbulence, the crypto investment fund sector remains sizable, and Bitcoin still holds the largest assets under management at $112.96 billion. However, if the current trend continues, it could erase the limited gains achieved in early 2025, with total YTD inflows already dwindled to just $165 million.

For now, all eyes are on whether this outflow trend is a temporary retreat — or a signal of deeper market realignment.

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