Digital asset investment products recorded a net outflow of $288 million over the week ending February 21. This marks five consecutive weeks of net outflows for cryptocurrency funds, with a cumulative outflow of $4 billion over the five weeks.
The withdrawal speed is significant, but it is lower than the $6 billion outflow recorded at the same time last year. This suggests that it is not panic selling, but rather that the market is undergoing a gradual adjustment.
Cooling atmosphere in the US market… Europe is actually seeing a net inflow
Trading volumes also reflected the cooling atmosphere of the market. ETP (Exchange-Traded Product) trading volume plummeted to $17 billion, a significant decrease from the record trading activity in recent weeks.
The decrease in trading volume, along with continued net outflows, indicates that the expansion of investor indifference and thin liquidity may increase short-term volatility risk.
In the regional analysis, investor behavior was clearly mixed. Funds based in the U.S. recorded a net outflow of $347 million.
Meanwhile, Europe and Canada experienced a total net inflow of $59 million. This is influenced by institutional investors from Switzerland ($19.5 million), Canada ($16.8 million), and Germany ($16.2 million).
This difference signals that overseas investors view the recent price decline as a selective buying opportunity.
On the other hand, U.S. investors are maintaining a defensive stance amid widespread market uncertainty.
Bitcoin and Ethereum weakness... Altcoin rebound
Bitcoin accounted for most of the net outflows in cryptocurrencies last week. $215 million was withdrawn from investment products.
Interestingly, short Bitcoin products recorded a net inflow of $5.5 million, the largest scale. This indicates that some investors are hedging against downside risk or betting on further declines.
Ethereum was the second main contributor to the net decrease, with $36.5 million withdrawn. Major products like multi-asset funds ($32.5 million outflow) and Tron ($18.9 million outflow) also faced difficulties.
This means that a cautious approach continues across the market. Continuous net outflows in top asset classes are interpreted as funds leaving market leaders. This phenomenon may provide opportunities in altcoins for quick investors.
In fact, despite the overall negative sentiment, some altcoins saw small inflows of funds.
XRP showed the largest net inflow among altcoins at $3.5 million. Solana ($3.3 million) and Chainlink ($1.2 million) followed.
Although this inflow did not offset the overall scale of net outflows, it shows that investors are selectively moving to assets with compelling narratives or relative momentum.
The latest data shows that the U.S. continues to exhibit market conditions characterized by selling pressure. Meanwhile, selective buying overseas and net inflows in altcoins suggest that some investor sentiment remains.