Digital Asset Products experienced net outflows of $2 billion in one week as part of a three-week decline that, in total, removed $3.2 billion from the sector. The correction reduced assets under management (AUM) of ETPs from $264 billion to $191 billion, a 27% contraction that makes the episode one of the sharpest recent moves in digital asset funds.
Bitcoin bore the brunt of the outflows with $1.38 billion in weekly withdrawals, including $1.1 billion from U.S. spot BTC ETFs, plus an additional $946 million following a liquidity cascade event. That movement coincided with a drop of nearly 10% in Bitcoin’s price, which during the episode stood around $95,740.
Ethereum showed mixed dynamics, with $689 million in outflows in one week—equivalent to 4% of the Ether ETP market—while ETH’s price fell 11%, alongside $205 million of inflows into Ethereum products. Additional reports indicate $457 million flowed into 2x leveraged ETPs, signaling tactical interest in leveraged positions despite the volatility.
Among altcoins, Solana recorded $12 million in inflows and extended a 13-day streak since the launch of its ETF on October 29, while other SOL figures reported ranged between $156 million and $291 million. XRP attracted between $73.9 million and $93.1 million in different reports. By region, Germany showed positive flows between $13.2 million and $54.2 million, while Switzerland and Canada contributed $30.8 million and $58.6 million respectively. Multi-asset products captured $69 million, and short Bitcoin ETPs also experienced renewed interest.
Digital Asset Products: flows by asset and region
The pressure was mainly related to an adverse macroeconomic environment and episodes of concentrated selling, with Federal Reserve policy statements feeding risk sentiment and initial nervousness about possible changes in interest rates. In addition, sales from large wallets and liquidity events amplified the declines and forced additional outflows. Matrixport characterized the period as a “mini bear market”, reflecting many traders’ perception of the scale of the adjustment.
Meanwhile, CoinShares analysts observed that some investors take advantage of declines—“dips as buying opportunities rather than exits”—consistent with a buying-on-dips strategy among participants with an accumulation horizon. From a product and compliance perspective, the episode emphasizes liquidity management, the design of leveraged ETPs, and traceability of large flows for KYC/ AML processes and reporting to regulators.
The shake-up reordered relative weights within Digital Asset Products and highlighted dependence on institutional flows amid macro signals. The operational takeaway for product teams, investors and compliance is to strengthen liquidity stress tests and continuity plans for episodes of concentrated selling.
