Digital asset investment products experienced significant inflows totaling $2.17 billion last week. This figure represents the highest weekly total recorded since October 10, 2025, a period shortly before a major market downturn. The majority of these inflows occurred early in the week, signaling strong investor interest. However, market sentiment shifted dramatically on Friday, with outflows reaching a substantial $378 million.
This reversal in investor behavior was attributed to several factors, including escalating diplomatic tensions concerning Greenland, renewed threats of additional trade tariffs, and reports suggesting that Kevin Hassett, a policy moderate, is likely to remain in his current role rather than assume the position of the next US Fed Chair.
Crypto Investors Piled In Early
According to CoinShares' Digital Asset Fund Flows Weekly Report, Bitcoin was the primary beneficiary of market inflows, attracting $1.55 billion over the past week. Despite ongoing regulatory uncertainties, other major digital assets also saw considerable capital investment. Even proposals under the US Senate Banking Committee’s CLARITY Act, which could potentially limit yield offerings on stablecoins, did not deter capital from flowing into Ethereum and XRP, which recorded inflows of $496 million and $69.5 million, respectively.
Several altcoins also experienced positive gains, with XRP products leading the pack with $45.5 million in inflows. Sui followed with $5.7 million, then Lido at $3.7 million, and Hedera at $2.6 million. Litecoin and Chainlink also registered smaller but positive inflows of $2.3 million and $1.2 million, respectively. In contrast, multi-asset products experienced an outflow of $12.5 million.
Investor interest remained robust across various global regions. The United States led the market, attracting $2.05 billion in new investment. Germany and Switzerland saw solid gains of $63.9 million and $41.6 million, respectively, while Canada and the Netherlands recorded $12.3 million and $6 million. France added $1.3 million, Australia saw $0.3 million, Italy gained $0.2 million, and New Zealand registered $0.1 million. Conversely, Sweden experienced outflows exceeding $4 million, and Brazil also saw $1 million exit the market.
Broader Market Caution Emerges
Market experts suggest that the recent flow reversal is now indicative of a broader shift toward risk-off behavior across digital assets. For instance, Petr Kozyakov, Co-Founder and CEO of Mercury, commented that the market correction suggests that "optimism was on thin ice." Following this episode, investors appear to be redirecting their capital towards traditional safe-haven assets.
“The biggest cryptocurrency stands at $93,000, with the dive in Asian trading evaporating most of this year’s gains. While sentiment had flipped positive at the start of the year, the pullback in digital assets suggests that optimism was on thin ice, underscored by multi-million-dollar liquidations across derivatives markets. Cryptocurrency markets are once again spiralling into risk-off mode as global stock markets also record losses. Meanwhile, gold and silver continue to shine brightly as investors seek out safer pastures.”