Crypto Funds Shed $1.73B as Bearish Sentiment Deepens: CoinShares

Digital asset investment products saw sharp outflows last week with investors pulling $1.73 billion, the largest weekly decline since mid-November 2025, according to CoinShares report authored by head of research James Butterfill.

CoinShares notes that the wave of redemptions reflects persistent bearish sentiment, driven by fading expectations for interest rate cuts, negative price momentum and growing disappointment that digital assets have not yet benefited from the broader “debasement trade.”

Outflows were heavily concentrated in the United States, which accounted for nearly $1.8 billion, while sentiment was more mixed across Europe and Canada.

Bitcoin and Ethereum Lead Weekly Redemptions

Bitcoin products recorded outflows of $1.09 billion, the largest since mid-November 2025, showing that investor confidence has yet to recover following the October 2025 price crash.

Ethereum followed with $630 million in outflows while XRP investment products saw an additional $18.2 million exit the market — highlighting broad-based weakness across major assets.

Butterfill addes that minor inflows into short-Bitcoin products — totalling just $0.5 million — suggest bearish positioning remains limited, but overall sentiment has not meaningfully improved.

Solana was also a notable exception attracting $17.1 million in inflows and bucking the wider negative trend. Smaller altcoins such as Binance-linked products ($4.6 million) and Chainlink ($3.8 million) also posted modest gains.

Regional Flows Diverge Outside the US

While the US dominated the outflows, CoinShares reports that other regions saw investors take advantage of price weakness to add to long positions.

Switzerland recorded inflows of $32.5 million, Canada added $33.5 million, and Germany saw $19.1 million in inflows. Sweden and the Netherlands both posted smaller outflows of $11.1 million and $4.4 million respectively.

The divergence suggests that while US-based investors are reducing exposure some international allocators continue to view pullbacks as entry opportunities.

Long-Term Adoption Model Points to $317K Bitcoin Floor by 2029

Despite near-term bearishness in fund flows CoinShares Research maintains a bullish long-term outlook based on its updated adoption-based valuation model.

The framework models Bitcoin as a global savings asset competing with deposits, gold, real estate, and bonds. Using conservative assumptions — including sub-1% disposable income allocation and a reduced flow-to-market-cap multiple of 3.5x — CoinShares projects Bitcoin ownership could rise from roughly 560 million owners in 2025 to 1.16 billion by 2029.

Under this scenario Bitcoin’s valuation floor could reach approximately $317,000 by 2029 implying a potential 3.2x return from mid-November 2025 levels, notes the firm.

CoinShares stressed that the model is designed to estimate price-supporting bottoms rather than speculative cycle peaks with ETF growth and emerging-market adoption continuing to accelerate global participation.