Regulatory Delays Trigger $952M Exodus From US Crypto Funds

Core Insights - Digital asset investment products experienced their first weekly outflow in a month, totaling $952 million, primarily due to delays in U.S. crypto legislation and ongoing regulatory uncertainty [1][2] - The outflows were predominantly from the U.S., amounting to $990 million, while Canadian and German crypto products saw modest inflows of $46.2 million and $15.6 million, respectively [1][2] - Ethereum-based products faced the largest outflows of $555 million, while Bitcoin products saw $460 million in outflows, indicating a significant shift in investor sentiment [2] Market Dynamics - Daily Bitcoin ETF netflows turned negative after a substantial inflow of $452 million, reflecting stagnant prices as investors prepare for the December holidays [3] - Bitcoin is currently trading around $90,000 but has struggled to maintain this level for the past month [3] - Despite the negative flows, there is optimism in the market, with a 68% chance assigned by users on prediction market Myriad for Bitcoin to reach $100,000 next [4] Selective Demand - Amid the overall retreat in the market, specific altcoins like Solana and XRP saw inflows of $48.5 million and $62.9 million, respectively, indicating selective investor interest in assets with unique regulatory narratives [5] - The recent outflows make it unlikely for global crypto exchange-traded products to surpass last year's total annual inflows, with total assets under management now at $46.7 billion, down from $48.7 billion at the end of 2024 [5]