Cryptocurrency investment products experienced increased outflows last week, with a net outflow of $1 billion since the beginning of the year.

According to the latest weekly report from CoinShares, digital asset investment products experienced a severe outflow of funds last week. The weekly statistics at the beginning of this month show that the outflow reached $1.7 billion, and since hitting a historical high in October 2025, the total assets under management have shrunk by $73 billion. Year-to-date, net outflows from these products have totaled $1 billion, reflecting a continued decline in investor confidence.

U.S. Divestment Leads, Global Investors Continue to Exit

The geographic distribution of outflows shows a clear concentration. The U.S. market’s divestment was the most prominent, with a single-week outflow of $1.65 billion, accounting for over 97%. Meanwhile, investors in countries like Canada and Sweden also adjusted their positions, reducing their exposure to cryptocurrencies. This widespread investor exit further confirms a significant shift in market sentiment.

Mainstream Coins Under Pressure, Hedging Products Attract Inflows Against the Trend

In terms of specific investor behavior, investment products related to mainstream cryptocurrencies such as Bitcoin, Ethereum, XRP, and Solana all experienced reductions in holdings. However, an interesting divergence emerged—short Bitcoin investment products and hype-related investment products saw inflows, with net inflows of $14.5 million and $15.5 million respectively. This phenomenon suggests that some savvy investors are positioning defensively or are cautious about the future performance of high-risk assets.

Federal Reserve Shift in Stance Triggers Market Sentiment Adjustment

Deep analysis indicates that the driving force behind this market correction is the hawkish tilt of the new Federal Reserve leadership. Additionally, the “whale sell-off” phenomenon within the four-year cycle of the crypto market is also contributing, as large holders gradually reduce their positions, sending clear signals of market adjustment. Geopolitical tensions further exacerbate market uncertainty, and the combination of these factors has triggered a reassessment of risk assets by investors, ultimately leading to large-scale fund outflows.