Digital asset investment products suffered another bruising week as investors pulled US$1.7 billion from funds, a run of outflows that has pushed year-to-date flows into a US$1 billion net withdrawal and erased roughly US$73 billion from assets under management since the October 2025 highs, according to the latest CoinShares weekly note.

The pain was concentrated in the United States, which accounted for about US$1.65 billion of the redemptions, while Canada and Sweden also saw meaningful outflows. Only a handful of markets, notably Switzerland and Germany, recorded modest inflows, underlining how broadly risk appetite has soured.

Across the major tokens, Bitcoin led the withdrawals with around US$1.32 billion leaving funds, while Ethereum products saw about US$308 million exit; XRP and Solana weren’t spared either. Short-Bitcoin products and so-called “hype” strategies bucked the trend, with short-BTC seeing fresh interest and tokenized-precious-metals exposure drawing niche inflows.

The market action reflects a rapid cooling of sentiment that traders and strategists say is driven by three interacting threads: a shift toward a potentially more hawkish U.S. monetary policy, heavy seller activity from large holders tied to crypto’s cyclical dynamics, and fresh geopolitical jitters. The nomination of Kevin Warsh as a possible Fed chair has been singled out by market commentators as a catalyst for risk-off positioning. News of the pick drove a broad selloff across risk assets and a bounce in the U.S. dollar, which in turn pressured crypto prices.

Price action has followed the headlines. Bitcoin has slipped sharply from its January peaks and was trading in the mid-$70,000s after a weekend of selling that erased several thousand dollars from the top crypto’s value; that weakness has been compounded by liquidations and waning leverage in derivatives markets. Ethereum has shown even greater volatility, trading materially lower than its January highs and hovering in the low-to-mid-$2,000 range as traders reassess risk premia across the networked token ecosystem.

One curious countercurrent has been the surge in on-chain activity around tokenized precious metals. Exchanges and token issuers reported record volumes and a wave of trading in tokenized silver and gold, which appears to have buoyed specialist “hype” products that track the space; some funds saw small but notable inflows tied to that trend even as broad crypto exposures were sold.

For investors, the note and recent market moves underscore a simple reality: macro forces now dominate shorter-term price action. Higher-for-longer rate expectations and a stronger dollar make yield-less, volatile assets harder to justify in large allocations, while cyclical selling from big holders can amplify moves. Traders who leaned into defensive products, shorts and tokenized-metals plays, benefited this week, but the overall picture remains one of de-risking and caution until clearer signs of macro stability return.

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