Crypto Funds Bleed $173 Million Amid US Outflows, XRP and Solana Buck the Trend

Core Insights - Crypto funds have experienced a fourth consecutive week of net outflows, totaling $173 million, indicating ongoing investor caution in the digital asset market [1] - Cumulative outflows over the past four weeks have reached $3.74 billion, reflecting sustained weak sentiment following earlier market volatility [2] - Despite the overall negative flows, there was a slight improvement in sentiment towards the end of the week, driven by softer-than-expected US inflation data, which led to $105 million in inflows on Friday [4] Market Activity - Earlier in the cycle, digital asset funds faced steeper withdrawals, with approximately $1.7 billion withdrawn in the last weeks of January [3] - ETF trading volumes have significantly decreased to $27 billion, down from a record $63 billion the previous week, suggesting a retreat from aggressive repositioning by investors [3] Regional Trends - The US accounted for $403 million in outflows, making it the primary driver of the global decline, while institutions in other markets may see recent price weakness as an opportunity [5] - Notable outflows were observed in Bitcoin investment products, which saw $133 million in withdrawals, indicating negative sentiment towards major assets [6] Asset-Specific Insights - Short Bitcoin products recorded outflows totaling $15.4 million over the past two weeks, which may signal nearing exhaustion of selling pressure [7][8]