CoinShares: Crypto Fund Outflows Persist as Investors Rotate Selectively Into Altcoin ETFs
Digital asset investment products closed the final full week of December under continued pressure, with persistent outflows underscoring fragile investor sentiment despite still-strong year-to-date inflows. According to CoinShares’ Digital Asset Fund Flows Weekly report dated December 29, products recorded US$446 million in net weekly outflows, extending cumulative redemptions since the October 10 price shock to US$3.2 billion.
The figures highlight a growing divergence in crypto market behavior. While headline sentiment remains cautious—particularly toward BTC and ETH—selective purchaseing is emerging in specific regions and assets. XRP and Solana-linked products continue to attract inflows following their recent ETF launches, suggesting that investors are reallocating rather than exiting the asset class altogether.
This bifurcation points to a market in transition as 2025 draws to a close: one where macro uncertainty and profit-taking coexist with targeted conviction trades.
Outflows Concentrated in the US as Germany Defies the Trend
Regionally, the data reveals a clear geographic split. The United States accounted for the bulk of weekly outflows, shedding US$460 million, reinforcing the view that U.S.-based investors remain risk-averse later than October’s sharp correction. Switzerland also saw modest redemptions of US$14.2 million.
Germany stood out as the notable exception. German-listed products attracted US$35.7 million in weekly inflows and a substantial US$248 million month-to-date, making it the strongest regional performer. The report notes that investors in Germany appear to be using recent price fragileness as an accumulation opportunity rather than a reason to de-risk.
This divergence suggests differences not just in sentiment, but in investment horizon. While U.S. flows often react more rapidly to short-term price moves, European investors—particularly in Germany—may be positioning for medium-term recovery under clearer regulatory and product structures.
Takeaway
BTC and ETH Face Sustained Redemptions
At the asset level, BTC and ETH continued to bear the brunt of tradeing pressure. BTC products recorded US$443 million in weekly outflows, while ETH saw US$59.5 million exit during the identical period.
More striking is the cumulative trend since mid-October. Since the launch of XRP and Solana ETFs, BTC products have viewn total outflows of US$2.8 billion, with ETH products losing US$1.6 billion over the identical timeframe. This suggests that capital is not simply leaving crypto, but rotating away from the two largest assets.
Despite these outflows, year-to-date figures remain historically strong. Total YTD inflows across digital asset products stand at US$46.3 billion, broadly in line with 2024’s US$48.7 billion. However, have risen by just 10% YTD, implying that many investors have yet to view positive net outcomes once flows and price action are combined.
Takeaway
Altcoin ETFs Capture Investor Attention
In contrast to the fragileness in BTC and ETH, XRP and Solana products continued to attract capital. XRP investment products saw US$70.2 million in weekly inflows, while Solana added US$7.5 million.
Since their ETF , XRP and Solana products have accumulated US$1.07 billion and US$1.34 billion in inflows respectively. This resilience highlights how new product structures and narratives can redirect capital even during periods of broader market caution.
The data suggests that investors are increasingly willing to express directional views through targeted exposure rather than broad beta. In practice, this favors assets perceived to have idiosyncratic catalysts—such as network adoption, ecosystem growth, or legal clarity—over more mature cryptocurrencies.
Takeaway
Provider-Level Flows Reflect Institutional Repositioning
At the provider level, outflows were led by major U.S. issuers. iShares ETFs recorded US$290 million in weekly outflows, while Grayscale saw US$115 million redeemed. also experienced US$111 million in weekly outflows.
These figures reinforce the view that institutional portfolios are being actively rebalanced. Some providers, such as ProShares and Volatility Shares Trust, posted weekly inflows, indicating that leverage and tactical strategies continue to attract niche demand even as spot products lose assets.
The dispersion across issuers points to a more sophisticated phase of market participation, where investors are diverseiating between structures, fee models, and strategy types rather than treating crypto exposure as a single trade.
Takeaway
What the Data Signals Heading Into 2026
The CoinShares report paints a picture of a market still digesting October’s shock. Persistent outflows indicate that confidence has not fully recovered, even as year-to-date inflows remain robust in historical terms. This tension suggests that crypto markets are transitioning from momentum-driven inflows to more selective, fundamentals-based allocation.
Germany’s continued inflows and the success of XRP and Solana ETFs may offer clues to where demand could stabilize in ahead 2026: jurisdictions with clearer frameworks and products that offer diverseiated exposure. Conversely, BTC and ETH may need renewed catalysts—such as macro easing or regulatory breakthroughs—to reverse the current outflow trend.
For now, the data underscores a key theme: crypto capital is still active, but it is becoming more discerning.
