Digital asset investment products experienced their first weekly outflows in over a month, as a combination of geopolitical tension and changing expectations regarding monetary policy weakened investor confidence.
According to the latest figures, cryptocurrency funds had net outflows of $ 414 million, marking a sharp turnaround after five consecutive weeks of inflows.
Cryptocurrency funds lost $ 414 million last week
The downturn coincided with increasing tension related to the conflict in Iran and a clear shift in expectations surrounding the Federal Reserve. The market has shifted from expecting rate cuts to pricing in possible rate increases.
The USA accounts for the majority of outflows, with $ 445 million leaving digital asset funds. This shows a clear risk appetite among American investors.
In contrast, the European markets showed signs of opportunistic buying interest. Investors in Germany and Canada bought for $ 21.2 million and $ 15.9 million, respectively, indicating faith in long-term value despite short-term volatility.
Among individual assets, Ethereum was the hardest hit, with outflows of $ 222 million. This has brought this year's inflows into negative territory, which experts partially attribute to regulatory uncertainty surrounding the Clarity Act.
Bitcoin also faced headwinds, with a drop of $ 194 million over the week. Nevertheless, it still shows strength and has maintained a strong net inflow of $ 964 million so far this year.
This suggests that although short-term sentiment is weakened, institutional conviction in Bitcoin remains intact.
In contrast, XRP stood out as a rare winner, attracting $ 15.8 million in inflows. XRP thus appears as a relatively safe haven among digital assets amid broader market turmoil.
The latest fund flow data shows how quickly sentiment in the crypto markets can shift when macroeconomic and geopolitical risks align, leaving investors needing to reassess exposure in an increasingly uncertain environment.