Digital asset investment products recorded a sharp reversal last week as investors pulled $952 million from the market. The move ended a four-week streak of inflows and reflected rising caution across the digital asset sector.
Regulatory uncertainty in the United States played a central role. Concerns over large holder selling also added pressure. Together, these factors shifted sentiment toward capital preservation rather than risk exposure.
According to CoinShares data, the pullback showed how closely institutional flows track policy clarity. Market participants reacted quickly to delays around the US Clarity Act. Those delays extended uncertainty for asset managers and fund issuers.
Hence, investors reduced exposure while awaiting clearer regulatory direction. Selling activity by large holders reinforced that defensive stance. Consequently, weekly flows turned negative despite earlier optimism.
US Outflows Dominate Global Picture
Outflows remained heavily concentrated in the United States. US-based products recorded $990 million in withdrawals during the week. That figure accounted for nearly all global redemptions. However, modest inflows from other regions provided limited relief.
Canada attracted $46.2 million in new allocations. Germany followed with $15.6 million in inflows. These figures suggested regional divergence in investor outlook.
Besides geography, the data highlighted shifting risk preferences. US investors appeared more sensitive to regulatory delays. International investors showed selective confidence instead. That contrast underscored how policy uncertainty shapes capital flows. Additionally, it revealed how regulatory timelines influence near-term positioning decisions.
Ethereum and Bitcoin See Heavy Selling
Ethereum absorbed the largest share of outflows. Products tied to the asset shed $555 million over the week. The decline reflected its exposure to regulatory outcomes.
Ethereum-linked products rely heavily on clarity around staking and classification rules. Hence, delays weighed heavily on sentiment. However, year-to-date inflows remain strong. Ethereum products have already attracted $12.7 billion this year. That figure far exceeds last year’s total.
Bitcoin also faced notable pressure. Funds tracking the asset lost $460 million during the period. Although Bitcoin retains strong institutional interest, inflows lag last year’s pace. Products have gathered $27.2 billion so far in 2025. In contrast, they drew $41.6 billion during the same period in 2024. That gap reflects growing investor selectivity.
Selective Support for Solana and XRP
Significantly, not all assets saw redemptions. Solana products recorded $48.5 million in inflows. XRP-linked funds attracted $62.9 million. These gains suggested targeted confidence despite broader weakness.
Investors appeared willing to back assets viewed as having clearer regulatory paths. Moreover, diversification strategies supported selective allocations.
Overall assets under management now stand at $46.7 billion. That figure remains below last year’s $48.7 billion peak. Hence, surpassing 2024 inflow levels appears increasingly unlikely.
However, shifting regional interest and selective inflows suggest investors have not abandoned the market. Instead, they continue to wait for clearer signals before committing fresh capital.
Source: https://coinpaper.com/13273/us-clarity-act-delays-trigger-952-m-digital-asset-fund-outflows-as-solana-and-xrp-attract-inflows
