Crypto Fund Outflows Hit $446M as XRP and Solana Defy Broader Market Weakness
Crypto fund outflows continued to weigh on sentiment last week as digital asset investment products shed $446 million, extending a selling streak that has now pushed total withdrawals since mid-October to roughly $3.2 billion.
The data highlights a market split. While Bitcoin and Ethereum products continue to face redemptions, capital is rotating into select alternatives, most notably XRP and Solana, which are attracting steady institutional interest despite broader weakness.
Crypto Fund Outflows Persist Despite Strong Year-to-Date Numbers
According to CoinShares, year-to-date inflows still stand at $46.3 billion, broadly in line with last year’s total. Yet assets under management are up only about 10 percent since January.
That gap reflects the impact of volatility and price drawdowns. Even with strong inflows earlier in the year, average investor returns have been muted once redemptions and price swings are factored in. Bitcoin’s failure to hold its October highs has further dampened enthusiasm.
Investor sentiment, while not panicked, remains fragile.
Regional Flow Data Reveals Sharp Divergence
The bulk of last week’s outflows came from the United States, where investors pulled roughly $460 million from crypto-linked products. Switzerland also recorded modest withdrawals, continuing a cautious trend across parts of Europe.
Germany stood out as the exception. The country attracted $35.7 million in fresh capital last week and logged $248 million in December inflows overall. The buying suggests German investors are using price weakness to build exposure rather than exit positions.
Bitcoin Outlook Remains Long-Term Constructive
Despite near-term pressure, some institutional voices remain optimistic. Matt Hougan has described Bitcoin’s current phase as a long-term upward grind rather than a cyclical peak.
In his view, institutional participation has reduced the risk of extreme drawdowns seen in earlier cycles. Instead of sharp collapses, Bitcoin is experiencing lower volatility and extended consolidation.
That assessment aligns with current market structure, where price remains range-bound rather than collapsing.
XRP and Solana Buck the Trend
XRP and Solana were the standout performers last week, drawing $70.2 million and $7.5 million in inflows respectively. Since their ETF launches in mid-October, XRP products have attracted more than $1 billion, while Solana funds have pulled in over $1.3 billion.
The contrast with Bitcoin and Ethereum is striking. Over the same period, Bitcoin products have seen $2.8 billion in outflows, while Ethereum vehicles have lost $1.6 billion. The data points to a clear rotation toward alternative assets rather than a full exit from crypto.
Bitcoin ETFs Still Dominate Despite Redemptions
Even amid redemptions, BlackRock’s iShares Bitcoin Trust remains a dominant force. The fund attracted roughly $25 billion in net inflows this year and ranks among the top ETFs globally by capital raised.
Since launch, total inflows have climbed above $60 billion, far exceeding peers. The resilience suggests that while sentiment has cooled, long-term institutional interest has not disappeared.
Market Structure Points to Extended Consolidation
Bitcoin continues to trade near $87,800, boxed between $85,000 support and $93,000 resistance. Analysts describe the setup as one of the weakest year-end performances in several years, but not a breakdown.
Derivatives data supports that view. Open interest across Bitcoin and Ethereum has declined sharply as traders reduce risk into year-end, signaling caution rather than conviction.
Ethereum, meanwhile, has shown early signs of stabilization. Staking inflows have overtaken exits for the first time in six months, potentially easing sell pressure if the trend holds into early 2026.
Conclusion
Crypto fund outflows of $446 million underline a market still searching for direction. Institutions are trimming exposure to Bitcoin and Ethereum while selectively adding to XRP and Solana.
The data does not suggest abandonment. Instead, it reflects rotation, caution, and consolidation. As the calendar turns, the next phase will depend on whether confidence returns or capital continues to seek opportunity elsewhere.
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