Key Takeaways:Digital asset funds saw $876 million in outflows last week, marking the fourth consecutive week of withdrawals and bringing total outflows to $4.75 billion.U.S. investors led the sell-off, withdrawing $922 million, while Switzerland, Canada, and Germany saw inflows, indicating some regional buying interest.Bitcoin saw the largest outflows at $756 million, though short-Bitcoin funds also had $19.8 million in withdrawals, suggesting investors may be nearing capitulation.Ethereum, Tron, and Aave experienced notable outflows, while Solana, XRP, and Sui attracted inflows.Blockchain-related equity exchange-traded products (ETPs) lost $48 million, reflecting broader negative sentiment.Sustained Outflows Reduce Assets Under ManagementAccording to CoinShares: Digital asset investment products continued their negative streak, with four consecutive weeks of outflows totaling $4.75 billion. This has reduced year-to-date inflows to $2.6 billion, with total assets under management (AUM) dropping to $142 billion, a $39 billion decline from their peak and the lowest level since mid-November 2024.Bitcoin Remains Under Selling PressureBitcoin was the primary focus, seeing $756 million in outflows last week, reflecting continued investor caution. However, short-Bitcoin funds also saw $19.8 million in outflows, the largest since December 2024, which may indicate that bearish positioning is unwinding.Altcoin Fund Flows Show Mixed SentimentEthereum, Tron, and Aave recorded significant outflows:Ethereum: $89 million outflowsTron: $32 million outflowsAave: $2.4 million outflowsDespite the overall market downturn, some altcoins saw net inflows, suggesting selective accumulation:Solana: $16.4 million inflowsXRP: $5.6 million inflowsSui: $2.7 million inflowsRegional TrendsU.S. investors were the most bearish, withdrawing $922 million, continuing a risk-off approach.Switzerland, Canada, and Germany saw inflows of $23 million, $14.7 million, and $13.3 million, respectively, suggesting that some investors are taking advantage of lower prices.Blockchain-Related Equities Face Selling PressureBlockchain-related equity ETPs also saw outflows, losing $48 million last week. This indicates that negative sentiment is extending beyond cryptocurrency funds into blockchain-focused stocks.Market Implications and OutlookPotential Capitulation SignsThe outflows from short-Bitcoin funds suggest that bearish sentiment may be fading, and some investors may be positioning for a market rebound.Diverging Regional SentimentU.S. investors are withdrawing, while European investors are accumulating, indicating different market outlooks across regions.Altcoin AccumulationContinued inflows into Solana, XRP, and Sui suggest that investors see long-term value in certain projects despite overall market weakness.Short-Term Caution, Long-Term OpportunitiesThe fourth consecutive week of outflows signals ongoing risk-off sentiment, but the slowing pace of withdrawals could indicate that selling pressure is beginning to ease.
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