Crypto Fund Outflows Slow as Altcoins See First Inflows in Weeks

The latest data from CoinShares reveals a significant shift in investor behavior within crypto funds. After two consecutive weeks of massive outflows totaling over $3.4 billion, the pace of withdrawals slowed sharply. Overall outflows from all crypto funds dropped to $187 million last week, down from $1.695 billion the week prior. For Bitcoin specifically, outflows of $264.4 million marked the third straight week of negative flows, but the figure represents a substantial deceleration. James Butterfill, author of the CoinShares report, highlighted the potential significance of this trend, noting that “the deceleration in flows historically [signals] a potential inflection point.”

This slowdown in fund outflows occurred alongside a notable price recovery. Per CoinGecko data, Bitcoin plunged to a nearly 16-month low of $62,822 during last week’s rout before rebounding to trade around $70,500. The concurrent timing of slowing outflows and price stabilization has led some observers to suggest the market may be finding a floor. However, the continued withdrawals have pushed total assets under management (AUM) for all crypto funds down to $129.8 billion, which CoinShares notes is the lowest level since March 2025, when the Trump administration announced its tariff package.

In a notable divergence, altcoin investment funds attracted inflows for the first time since the middle of January, breaking a three-week negative trend. XRP funds led the way with $63.1 million in inflows, while Ethereum and Solana funds saw more modest gains of $5.3 million and $8.2 million, respectively. This positive flow into altcoin products contrasts with the still-negative sentiment surrounding Bitcoin funds, suggesting a potential rotation or selective bargain-hunting by institutional investors.

Despite the declining AUM, trading activity in crypto Exchange-Traded Products (ETPs) surged to a record high. Weekly ETP volumes reached $63.1 billion, surpassing the previous peak of $56.4 billion set last October. This record activity in regulated products stands in stark contrast to the spot cryptocurrency markets. Analysis from 10x Research pointed out that “volumes during the crash were significantly lower than during the October selloff, indicating thinner liquidity and derivatives-driven activity rather than broad market participation.” This suggests the recent volatility may have been amplified by leveraged derivatives trading rather than widespread selling by retail holders.

The market outlook remains deeply fractured among analysts and prediction markets. In the near term, caution prevails. 10x Research noted its altcoin model has been bearish since mid-January, warning that “most altcoins remain structurally weak.” This sentiment is echoed on the prediction market Myriad, owned by Decrypt’s parent company Dastan, where users place just a 10% chance of an “alt season” occurring in the first quarter of the year.

Forecasts for Bitcoin are equally mixed. 10x Research suggests any recovery below $91,000 is likely a “countertrend” bounce, not a resumption of the bull market. Users on Myriad see a 56% probability that Bitcoin’s next major move will be down to $55,000 rather than up to $84,000. Some analysts are even more pessimistic; Bloomberg’s Mike McGlone reiterated his bearish view, suggesting Bitcoin could “revert toward $10,000, underscoring the inordinate burden on a highly speculative asset to stay lofty.”

On the opposite end of the spectrum, long-term perma-bulls remain steadfast. Writing on the Quantum Economics blog, CryptoMondays founder Lou Kerner reaffirmed his $1 million Bitcoin price target for 2031. “NOTHING that has happened since, including over the last three months, gives me any concern whatsoever,” Kerner stated, referencing a prediction he first published in January 2021. This extreme divergence in forecasts—from $10,000 to $1 million—highlights the profound uncertainty and speculative nature that continues to define the cryptocurrency market as it searches for stability.