CoinShares Publishes Report Highlighting Bitcoin's Largest Weekly Outflow on Record

CoinShares, a major European digital asset manager, recently published a significant report detailing the largest weekly outflows of crypto asset investment products on record.

CoinShares, a prominent European digital asset manager, has unveiled striking figures indicating the largest weekly outflows from crypto asset investment products in "recorded history."

The latest report from CoinShares, published on Monday, showcases an unprecedented withdrawal of over $2.9 billion within the past week alone. This pushes the three-week outflow total to $3.8 billion.

To put this in perspective, this starkly contrasts with the prior 19-week inflow streak, which had seen a staggering $29 billion channeled into the market.

Bitcoin Leads the Outflo A vast majority of the pessimistic market sentiment last week was channeled into Bitcoin as the crypto giant saw outflows total $2.59 billion.

Short Bitcoin products did see minor inflows of $2.3 million but the majority of the market pulled out of Bitcoin last week.

CoinShares also noted that Ethereum saw its highest-ever weekly outflows at $300 million while other major altcoins like Solana and Ton saw stellar withdrawals of $7.4 million and $22.6 million respectively.

However, amid the largely negative sentiment, a few assets managed to shine as new data from CoinShares showed that Sui saw the best inflows with $15.5 million flowing into the asset last week. XRP followed with $5 million in fresh investments.

Despite these exceptions, the overall picture remains one of caution and reduced appetite for digital asset products. Even blockchain equities were not immune, experiencing outflows of $25.3 million during the past week.

Several factors may have contributed to the outflows, according to James Butterfill, Head of Research at CoinShares. These include the fallout from the Bybit hack, a more aggressive stance from the Federal Reserve, and the natural profit-taking that tends to occur after sustained inflow periods.

These events combined to dampen sentiment and drive investors to liquidate holdings.

“We believe several factors contributed to this trend, including the recent Bybit hack, a more hawkish Federal Reserve and the preceding 19 week inflow streak totalling USD29bn. These elements likely led to a mix of profit-taking and weakened sentiment toward the asset class.”

The outflows were also largely concentrated in several key regions. The United States led the charge with withdrawals of $2.87 billion, followed by Switzerland at $73 million and Canada at $16.9 million.

However, the report did highlight a bright spot: German investors bucked the trend, injecting $55.3 million in fresh capital as they sought to capitalize on the price weakness. This regional divergence highlights the varying approaches investors are taking in response to current market conditions.