Crypto Funds Shed $1.73B as Bearish Sentiment Deepens: CoinShares

Core Insights - Digital asset investment products experienced significant outflows of $1.73 billion, marking the largest weekly decline since mid-November 2025, driven by bearish sentiment and fading expectations for interest rate cuts [1] - The outflows were predominantly from the United States, which accounted for nearly $1.8 billion, while sentiment varied across Europe and Canada [1] Group 1: Outflows by Major Assets - Bitcoin products saw outflows of $1.09 billion, the largest since mid-November 2025, indicating a lack of recovery in investor confidence following the October 2025 price crash [2] - Ethereum experienced outflows of $630 million, and XRP investment products had an additional $18.2 million exit, reflecting widespread weakness among major digital assets [2] Group 2: Minor Inflows and Exceptions - Minor inflows into short-Bitcoin products totaled $0.5 million, suggesting limited bearish positioning, although overall sentiment remains unchanged [3] - Solana attracted $17.1 million in inflows, contrasting with the broader negative trend, while smaller altcoins like Binance-linked products ($4.6 million) and Chainlink ($3.8 million) also saw modest gains [3] Group 3: Regional Flow Dynamics - While the US faced significant outflows, other regions capitalized on price weakness to increase long positions, with Switzerland recording inflows of $32.5 million, Canada $33.5 million, and Germany $19.1 million [4] - Sweden and the Netherlands experienced smaller outflows of $11.1 million and $4.4 million, respectively, indicating a divergence in investor behavior [4][5] Group 4: Long-Term Outlook - Despite short-term bearish trends in fund flows, CoinShares Research maintains a bullish long-term outlook for Bitcoin, projecting a potential floor price of $317,000 by 2029 based on an updated adoption-based valuation model [6] - The model suggests Bitcoin could grow from approximately 560 million owners in 2025 to 1.16 billion by 2029, positioning it as a global savings asset competing with traditional investments [7]