Weekly Crypto Outflows Reach $446 Million Despite XRP Rally

Digital asset investment products experienced $446 million in outflows last week, increasing the total withdrawals since mid-October to a substantial $3.2 billion.

Key Takeaways

Outflows: Crypto funds saw significant outflows totaling $446 million last week.
Year-to-Date Inflows: Total inflows for the year are $46.3 billion, close to 2024’s $48.7 billion.
Regional Trends: The U.S. recorded the majority of outflows, while Germany saw notable inflows.
Asset Performance: XRP and Solana performed well with substantial inflows, contrasting with Bitcoin and Ethereum's struggles.

Overview of the Current Crypto Landscape

According to a recent report by CoinShares, the ongoing selling pressure has persisted despite notable performances from XRP and Solana exchange-traded funds (ETFs), which are continuing to draw in institutional investments. In contrast, Bitcoin and Ethereum have been facing ongoing redemptions, a stark deviation from trends observed in 2024.

Year-to-date inflows have reached $46.3 billion, nearly aligning with the $48.7 billion total reported for 2024. However, despite this influx, assets under management have seen a modest 10% increase since January. The prevailing investor sentiment appears to remain tentative, despite the significant year-to-date flows.

This disconnect indicates that average investors may not have experienced substantial gains when considering net flows, leading to a decline in enthusiasm, even in light of Bitcoin’s notable October peak close to $125,100.

Crypto Funds Weekly Outflows - Weekly Crypto Asset Flows Chart

Divergent Investment Patterns Across Regions

Outflows were predominantly observed in the United States, where $460 million was withdrawn last week, contributing significantly to the global total. Meanwhile, Switzerland saw minor redemptions totaling $14.2 million, which reflects a trend of cautious selling throughout European markets.

Germany presented a contrasting scenario, attracting $35.7 million in new capital and recorded a total of $248 million in inflows for December. This robust buying activity suggests that German investors have strategically capitalized on recent price declines to enhance their positions while valuations remain below recent peaks.

Bitwise’s chief investment officer Matt Hougan commented on the current outlook for Bitcoin, describing it as demonstrating a prolonged upward trend characterized by lower volatility. He remarked, "I think we’re in a 10-year grind upward of strong returns," emphasizing that institutional buying has mitigated downside risks compared to past cycles that faced significant declines.

Crypto Funds Weekly Outflows - Flows by Exchange Country Table

XRP and Solana Defy Market Trends

XRP and Solana stood out last week, recording the largest inflows of $70.2 million and $7.5 million, respectively, marking a continuation of their positive trend that began with their ETF launches in mid-October. Since their introductions, XRP products have accumulated $1.07 billion, while Solana attracted $1.34 billion, resisting the broader bearish sentiment affecting other cryptocurrencies.

In stark contrast, Bitcoin and Ethereum experienced significant outflows, with Bitcoin losing $443 million and Ethereum seeing $59.5 million withdrawn last week.

Crypto Funds Weekly Outflows - Flows by Assets Table

The launches of the XRP and Solana ETFs have seen Bitcoin products lose $2.8 billion, while Ethereum-related products declined by $1.6 billion, indicating a significant shift towards alternative assets. BlackRock’s iShares Bitcoin Trust has garnered $25 billion in inflows this year, despite Bitcoin's price dropping approximately 30% from its October highs, placing it sixth among all ETFs for inflows while still posting negative returns.

According to Bloomberg ETF analyst Eric Balchunas, the success of the iShares Bitcoin Trust could be even more remarkable in stronger market conditions if it managed to raise $25 billion during a less favorable market.

Market Expectations and Future Trends

As of now, Bitcoin is trading around $87,800, confined between a support level of $85,000 and a resistance point of $93,000, which analysts are calling its "weakest year-end performance" in seven years. Last week, there was a notable reduction in open interest for both Bitcoin and Ethereum, decreasing by $3 billion and $2 billion, respectively, as traders opted to take a cautious approach.

In a discussion with Cryptonews, John Glover, CIO at Ledn, expects ongoing volatility, predicting price fluctuations between $71,000 and $84,000 in order to form a fourth-wave bottom, with an upward target of $145,000 to $160,000 for the fifth wave.

Crypto Funds Weekly Outflows - Bitcoin price chart analysis

Glover noted, "Once the bottom of Wave IV is clearly established, which should be sometime in Q1/Q2 of 2026, then I look for a rally to $145k to $160k in 2026/2027," adding that his outlook would change only if Bitcoin drops below $69,000.

In a notable development, Ethereum's staking dynamics have also shifted, with new inflows surpassing withdrawals for the first time in six months. Approximately 745,619 Ether are currently waiting to enter staking, while the exit queue comprises 360,518 ETH. This trend marks a significant shift from previous months, potentially reducing ongoing selling pressure if the momentum continues into early 2026.