Crypto Funds Bleed $173 Million Amid US Outflows, XRP and Solana Buck the Trend

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In a most curious turn of events, the realm of cryptocurrency funds has recorded not just one, but a fourth consecutive week of net outflows, shedding a staggering $173 million, as if investors were shedding their winter coats in a rather unceremonious fashion. Caution, it seems, is the order of the day across the major digital assets.

Yet, let us not despair! The frenzy of withdrawals has notably slowed, akin to a once-rapid stream that has now become a gentle trickle. Some altcoins, in a delightful twist of fate, continue to allure fresh capital like a charming suitor at a ball.

The Great Crypto Exodus: Slowing Down from January’s Clutches

According to the latest weekly fund flows report from CoinShares-ah, those generous souls-the cumulative outflows over the past four weeks have reached a rather impressive $3.74 billion, a reflection of the despondent sentiment following the earlier tumult in the market. One might say it resembles a grand abandonment of a sinking ship.

While outflows persisted, last week’s figure was somewhat on par with the previous week’s $187 million decline, suggesting that perhaps the sharp liquidation phase may be approaching an easing, much like a laboring writer finding his muse once more.

Earlier in this dramatic cycle, digital asset funds encountered even steeper withdrawals, with roughly $1.7 billion fleeing each of the final weeks of January, creating quite the spectacle for those watching from the sidelines.

Market activity, too, has cooled significantly, with ETF trading volumes plummeting to a mere $27 billion, a stark contrast to the record $63 billion reported just a week prior. It appears investors are taking a step back, perhaps contemplating the eternal question: to buy or not to buy?

This decline in turnover suggests a collective retreat from aggressive repositioning, as if everyone suddenly decided it was time for tea and introspection, even as broader uncertainty looms like a storm cloud over a quaint village.

Despite the prevailing negative flows, sentiment saw a slight upturn toward the week’s end, spurred by softer-than-expected US inflation data, which coaxed a modest $105 million in inflows on Friday-a delightful surprise, much like an unexpected visitor bearing gifts.

“Sentiment improved slightly on Friday following weaker-than-expected CPI data,” mused James Butterfill, head of research at CoinShares, as if he were relaying the latest gossip from the town square.

This suggests that macroeconomic signals continue to wield considerable influence over the whims of short-term crypto demand, like a conductor leading an orchestra of uncertainty.

A Regional Divide: Bitcoin and Ethereum Lead the Charge of Withdrawals

One of the most noteworthy trends emerging from the latest data is the widening chasm between regions. The US, our dear friend, accounted for a hefty $403 million in outflows, positioning itself as the primary instigator of the global decline-a veritable drama unfolding on the world stage.

While US investors remain cautious, perhaps reflecting their own macro uncertainties and shifting positions, institutions in other markets may be eyeing the recent price weakness as a golden opportunity to accumulate, like a savvy shopper at a post-holiday sale.

Meanwhile, the largest digital assets have borne the brunt of negative sentiment, with Bitcoin investment products suffering a loss of $133 million, marking the weakest performance among major assets-as if it were the protagonist in a tragic tale of woe.

Interestingly enough, even short Bitcoin products recorded outflows totaling $15.4 million over the past fortnight, as if the very specter of bearishness has lost its appeal.

Historically, declines in demand for bearish positions have sometimes coincided with periods of market capitulation. This could signal that the worst of the selling pressure may be nearing exhaustion, like a long-winded tale finally drawing to its conclusion.

Ethereum, too, has not escaped unscathed, posting $85.1 million in outflows as investors pare back exposure to the second-largest crypto. Smaller products, such as Hyperliquid, have also felt the pinch, with modest withdrawals of around $1 million, leaving no stone unturned in this whimsical financial narrative.

Altcoins: The Unexpected Heroes of the Tale

Contrary to the overarching trend, several altcoins have exhibited signs of attracting capital, almost as if they were the heroes in an otherwise dismal saga. XRP led the charge with inflows of $33.4 million, followed closely by Solana at $31 million, while Chainlink added a respectable $1.1 million to its coffers.

These inflows point to a selective rotation rather than a wholesale exit from the crypto sector. Investors appear to be reallocating their affections towards assets perceived to possess stronger narratives or relative momentum, even as their interest in larger-cap tokens wanes-like a fickle lover choosing a new muse.

In sum, the latest data paints a tableau of a market still under pressure, yet stabilizing when compared to the frantic selling witnessed earlier in the year. Crypto outflows persist, yet their diminished scale, coupled with regional inflows and sustained interest in certain altcoins, suggests that investors are merely adjusting their portfolios rather than abandoning the asset class altogether, much like a tailor adjusting a fine suit.

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2026-02-16 15:12