Crypto Funds See $446M Weekly Outflows as XRP and Solana Draw Institutional Cash — Analysis

Summary of flows: Digital asset investment products recorded $446 million in outflows last week, bringing total withdrawals since mid-October to $3.2 billion. The latest report from Company CoinShares shows persistent selling pressure despite continued institutional demand for XRP and Solana exchange-traded products. Year-to-date net inflows stand at $46.3 billion, roughly in line with 2024's $48.7 billion, yet assets under management have increased by only 10% since January, signaling a notable disconnect between headline flows and realized investor returns.

Regional patterns and concentration: Outflows were heavily concentrated in the United States, which accounted for $460 million of last week’s withdrawals. Switzerland posted modest redemptions of $14.2 million, while Germany bucked the trend, attracting $35.7 million in fresh capital and reporting $248 million in inflows for December overall. These divergences suggest differing tactical responses by regional investors — with German buyers apparently accumulating on weakness rather than selling into it.

Coin-level rotation: XRP and Solana led inflows, netting $70.2 million and $7.5 million respectively last week. Since their mid-October ETF debuts, XRP products have gathered approximately $1.07 billion and Solana around $1.34 billion. By contrast, Bitcoin and Ethereum products suffered outflows of $443 million and $59.5 million last week, highlighting a rotation toward alternative exposures amid ETF-driven flows.

Institutional context and notable funds: Company BlackRock's iShares Bitcoin Trust attracted roughly $25 billion of net inflows this year despite Bitcoin trading ~30% below its October peak, and the fund has accumulated about $62.5 billion in total net inflows since launch. Company Fidelity Wise Origin Bitcoin Fund trails by a factor of more than five in YTD flows, underscoring the concentration of institutional demand in a small number of dominant vehicles. Company Cryptonews highlighted comments from Company Bloomberg ETF analyst Mr. Eric Balchunas, who suggested that strong fundraising this year implies materially larger upside in more favorable markets.

Market structure and technical picture: Bitcoin traded near $87,800 at the report's press time, effectively trapped between a key support band of $85,000 and resistance around $93,000. Perpetual open interest for Bitcoin and Ethereum dropped by approximately $3 billion and $2 billion respectively as year-end de-risking pushed traders to the sidelines, according to Company QCP Capital. This reduction in leverage can both mute volatility and delay directional breakouts while liquidity rebuilds.

Sentiment and outlook: Company Bitwise chief investment officer Mr. Matt Hougan characterized the Bitcoin outlook as a “prolonged upward trend” with lower realized volatility compared to earlier cycles. Company Ledn chief investment officer Mr. John Glover outlined a multi-wave view that anticipates further volatility and a potential Wave IV bottom between $71,000 and $84,000 before a fifth-wave rally targets $145,000–$160,000 in 2026–2027, with a break below $69,000 altering that scenario.

Staking dynamics and supply pressure: Ethereum staking flows reversed after six months, with fresh inflows exceeding exits; roughly 745,619 ETH currently await entry to staking while the exit queue stands near 360,518 ETH. If sustained, this shift could alleviate a material portion of sell pressure that has weighed on Ether in recent months.

Implications for traders and investors: The data points combine into a coherent near-term thesis: institutional capital is reallocating within digital assets (favoring ETF-accessible alternatives like XRP and Solana), while the broader market digests year-end deleveraging. For traders, the immediate landscape is one of extended consolidation with clear technical levels ($85k support, $93k resistance) and reduced derivatives participation. For strategic investors, inflows to selective ETFs and the observed German accumulation suggest opportunities to accumulate on weakness, but the fragile sentiment and concentrated flows argue for prudent position sizing and attention to liquidity.

Source and provenance: This analysis synthesizes figures and commentary from Company CoinShares, Company Cryptonews, Company QCP Capital, Company Bitwise, Company Ledn and public ETF flow reports.