Digital Asset Funds See Large Outflows as XRP and Solana ETFs Attract Targeted Demand

Company CoinShares weekly flow data highlights a market dominated by defensive positioning and selective accumulation rather than broad risk appetite. Last week, digital-asset investment products recorded net outflows of $446 million, pushing cumulative withdrawals since the early October shock to approximately $3.2 billion. While year-to-date inflows still appear substantial on paper—near $46.3 billion—assets under management have only climbed by about 10% this year. This disparity underlines how volatile pricing has eroded investor outcomes despite continued capital deployment.

Regionally, outflows were concentrated in the United States, which posted roughly $460 million of withdrawals last week. Switzerland also saw modest outflows, reflecting a cautious stance among some developed-market investors. Conversely, Germany attracted $35.7 million in inflows and has led monthly inflows with about $248 million, signaling that some investors interpret recent weakness as a buying opportunity.

Notably, demand has been selective. Products linked to XRP and Solana continued to draw capital: XRP funds recorded inflows of $70.2 million while Solana products added $7.5 million last week. Since their mid-October ETF launches in the United States, each of these assets has accumulated more than $1 billion in inflows, marking them as important exceptions to the broader outflow trend. For market participants and portfolio managers, this divergence signals a preference for targeted exposure to specific growth themes rather than blanket allocation across major tokens.

In contrast, legacy large-cap funds faced pronounced withdrawals. Bitcoin funds saw approximately $443 million in outflows, and Ethereum products lost about $59.5 million over the week. Both Bitcoin and Ethereum have posted multi-billion-dollar outflows since the introduction of newer ETF wrappers, which points to shifting investor behavior as new products change liquidity dynamics and portfolio exposures.

From an analysis standpoint, the flows paint a picture of cautious investors reacting to price volatility by trimming positions in established large-cap funds while redeploying capital selectively into newer or thematic products. This pattern can have implications for price support and resistance: concentrated inflows into XRP and Solana ETFs can create localized demand support for those tokens, while continued outflows from Bitcoin and Ethereum funds may increase selling pressure or amplify volatility around key support levels.

For traders and strategists, the data suggests several actionable takeaways: maintain smaller position sizes in sources of persistent outflows, watch for accumulation signals in thematic ETFs as potential early support indicators, and monitor regional flow divergences—especially Germany’s appetite—for clues about where tactical buying may emerge. Investors should also factor in that year-to-date inflows look healthier in nominal terms than net performance, meaning allocation decisions must weigh both capital movement and realized/unrealized market losses.

Overall, the latest report from Company CoinShares shows a market in which selective demand coexists with broad risk aversion. That mixed picture increases the importance of active portfolio management, careful position sizing, and monitoring of ETF-driven liquidity shifts that could reshape short- and medium-term price behavior.