Digital asset investment products experienced a nuanced performance last week, with modest net inflows of $6 million despite mid-week volatility triggered by unexpected U.S. retail sales data. The latest CoinShares report highlighted the resilience and regional divides in investor sentiment.
Initially, there were positive flows into crypto investment products at the beginning of the week. However, the release of stronger-than-expected U.S. retail sales data on Wednesday led to a swift reversal, with investors pulling $146 million out of the market. The United States saw the largest outflows, with $71 million withdrawn. In contrast, Europe and Canada witnessed a net inflow of $75.4 million, led by Switzerland with $43.7 million, followed by Germany with $22.3 million and Canada with $9.4 million.
Bitcoin ended the week with minor outflows of $6 million, while even short-Bitcoin products recorded $1.2 million in outflows. This marks the seventh consecutive week of negative flows into short products, totaling $36 million in outflows.
Ethereum continued to struggle, with $26.7 million in outflows last week, bringing its eight-week total to $772 million in capital flight. Despite this, Ethereum maintains a positive position on a year-to-date basis with $215 million in net inflows.
In contrast, XRP emerged as the top performer among digital asset investment products, with inflows of $37.7 million last week. XRP has seen a resurgence in network activity, with active addresses surging by 67.5% in just one day. Additionally, Coinbase received approval from the CFTC to launch XRP futures contracts, further boosting interest in the asset.
Bitcoin’s price behavior has also undergone a transformation, trading less like a tech stock and more like a traditional safe-haven asset such as gold. Over the past two weeks, Bitcoin has staged a 12% recovery despite geopolitical tensions, solidifying its role as a hedge against macroeconomic instability.
Overall, the mixed performance of digital asset products last week reflects a market in flux, characterized by shifting sentiment, regional variations, and growing institutional maturity. The industry continues to evolve, with different assets experiencing unique trends and developments that shape the overall landscape of digital asset investment.