Crypto Funds See $446M in Weekly Outflows Despite XRP Rally

Core Insights - Digital asset investment products experienced significant outflows of $446 million last week, totaling $3.2 billion in withdrawals since mid-October, indicating persistent selling pressure in the market [1] - Year-to-date inflows reached $46.3 billion, closely aligning with 2024's total of $48.7 billion, yet assets under management have only increased by 10% since January, reflecting fragile investor sentiment [2] - The United States accounted for the majority of global withdrawals, with $460 million withdrawn last week, while Switzerland and Germany showed contrasting trends in investment behavior [2][3] Regional Flows - Switzerland saw minor redemptions of $14.2 million, continuing a trend of measured selling in European markets, while Germany attracted $35.7 million in new capital, indicating strategic accumulation by investors [3] - The sustained buying in Germany suggests that investors are capitalizing on recent price weaknesses to build positions at lower valuations [3] Market Trends - XRP and Solana ETFs recorded the largest inflows last week, with $70.2 million and $7.5 million respectively, defying the broader market weakness affecting Bitcoin and Ethereum [5] - Since the launch of XRP and Solana ETFs, Bitcoin products have lost $2.8 billion, and Ethereum vehicles have seen outflows of $1.6 billion, highlighting a shift towards alternative assets [6] - BlackRock's iShares Bitcoin Trust attracted $25 billion in net inflows this year, despite Bitcoin's decline of approximately 30% from its October peak, ranking it sixth among all ETFs by inflows [6] Expert Commentary - The chief investment officer of Bitwise described the current Bitcoin outlook as a prolonged upward trend with lower volatility, suggesting a 10-year upward grind of strong returns, supported by institutional buying that mitigates downside risks [4]