CoinShares Reports Digital Asset Investment Products Saw Their Fourth Consecutive Week of Outflows

CoinShares, a prominent European digital asset manager, earlier today released its latest report on cryptocurrency investment flows. The findings revealed that digital asset investment

CoinShares, a distinguished European digital asset manager, has unveiled its latest report on cryptocurrency investment flows, presenting a snapshot of the market trends.

According to CoinShares’ report released earlier today, May 7, digital asset investment products encountered their fourth consecutive week of outflows. The report's findings disclosed that the outflows totaled $876 million over the past week.

Despite the slowdown in outflows compared to previous weeks, which reached their highest point at $3.3 billion in mid-April, CoinShares' Head of Research, James Butterfill, highlighted that investor sentiment continues to lean bearish.

"Investors pulled out of crypto net inflows for a fourth week, with outflows slowing to $876 million. Investors pulled out of U.S. products the strongest, with the majority of outflows going into Bitcoin and short-Bitcoin products," Butterfill stated.

CoinShares noted that over the past four-week period, cumulative outflows reached $4.75 billion, impacting the year-to-date inflows, which now stand at $2.6 billion.

As a result of the outflows and a combination of negative price movements, CoinShares's total assets under management (AUM) in digital assets have decreased by $39 billion from their previous peak, now sitting at $142 billion. This marks the lowest point for AUM since mid-November 2024.

The report further indicated that US investors showed the strongest bearish tendencies, pulling out $922 million during the week. In contrast, other regions interpreted the market conditions as a buying opportunity. Switzerland led the inflows with $23 million, Canada and Germany followed with $14.7 million and $13.3 million respectively.

In terms of asset-specific trends, Bitcoin (BTC) dominated the outflows, with investors withdrawing a significant sum of $756 million from Bitcoin products.

Additionally, short-Bitcoin products also saw outflows totaling $19.8 million, the largest since December 2024. These outflows from Bitcoin products suggest that investors are becoming more pessimistic on the cryptocurrency market.

Among altcoins, Ethereum (ETH) experienced the most substantial outflows with $89 million, while Tron (TRX) and Aave (AAVE) saw smaller outflows of $32 million and $2.4 million respectively.

On the other hand, a few altcoins recorded inflows. Solana (SOL) attracted the largest inflow with $16.4 million, XRP saw an inflow of $5.6 million, and Sui (SUI) received $2.7 million in the reporting period.

Crypto Market Performance

Amid the negative fund flows reported by CoinShares, the overall crypto market performance has shown a similar downward trend, reflecting a steady decline in valuation.

Particularly, according to data from CoinGecko, over the past week, the global cryptocurrency market capitalization has plunged from $3.26 trillion seen last Monday to $2.81 trillion as of today—roughly $450 billion decline.

This drop comes as a result of the unstable upward momentum from BTC. This lack of upside momentum has led to BTC seeing more decrease in price than increase. In the past 7 days, Bitcoin has seen an 11.3% drop.

Its past day price action has also added to this negative performance with BTC currently trading at a price of $82,370, marking an additional 2.3% drop to its price.

The continous drop from BTC has been pushing the asset further away from its all-time high above $109,000 registered in January. At current market price, BTC is down nearly 25% from this peak.

Other major cryptocurrencies including Ethereum and Solana have also followed BTC closely in its bearishness with both assets down by 11.9% and 22.9% respectively over the past 7 days.