Digital‑Asset AUM Slides $73 bn Since October 2025 Peaks, CoinShares Reports
Global investors withdrew $1.7 bn from crypto‑related funds last week, erasing year‑to‑date gains and leaving a net outflow of roughly $1 bn across the sector.
Overview
CoinShares’ latest “Digital Asset Fund Flows” weekly briefing shows that the cryptocurrency market’s total assets under management (AUM) have contracted by $73 billion since the price rally that peaked in October 2025. The decline reflects a sharp reversal of sentiment that has been building over the past several months.
Key figures from the report:
- Weekly outflows: $1.7 bn pulled from digital‑asset investment products.
- YTD net outflow: Approximately $1 bn globally.
- AUM decline since October 2025: $73 bn.
- Dominant drivers: A more hawkish stance from the incoming U.S. Federal Reserve chair, renewed selling pressure from large‑scale “whale” holders following the four‑year market cycle, and heightened geopolitical uncertainty.
Fund‑Level Movements
Bitcoin‑Centric Products
- Bitcoin funds experienced the largest withdrawals, with $1.32 bn exiting in the past week.
- Short‑Bitcoin ETFs were an outlier, attracting $14.5 m in fresh capital and raising their year‑to‑date AUM by 8.1 %. The inflows suggest investors are seeking downside protection as the market tests the $80,000 support level.
Other Leading Tokens
| Asset | Weekly Net Outflow |
|---|---|
| Ethereum | $308 m |
| XRP | $43.7 m |
| Solana | $31.7 m |
| Sui | $1.2 m |
| Litecoin | $0.2 m |
Multi‑asset crypto funds recorded modest exits of $13.5 m, while Chainlink was the only notable net inflow, pulling in $0.5 m.
“Hype” Products and Tokenized Metals
CoinShares also highlighted a modest $15.5 m uptick in so‑called hype investment products, driven primarily by on‑chain demand for tokenized precious‑metal exposures.
Regional Flow Dynamics
- United States: Outflows of $1.65 bn, the biggest regional drain.
- Canada & Sweden: $37.3 m and $18.9 m respectively.
- Netherlands, France, New Zealand: Smallish withdrawals.
Conversely, Switzerland and Germany posted inflows of $11 m and $4.3 m, while Brazil, Australia, and Italy recorded marginal gains.
Market Context and Downside Protection
Bitcoin’s price slipped below the $80,000 psychological barrier, briefly touching $74,500 – a level that aligns with the 2025 cycle lows identified by several analysts. The dip triggered over $2.5 bn in forced liquidations of leveraged long positions, exacerbating a bearish market tone already dampened by ongoing ETF outflows.
The announcement of Kevin Warsh as the next Federal Reserve Chair has reinforced expectations of a tighter monetary policy stance, adding to the risk‑off sentiment among crypto investors. Meanwhile, large‑scale holders (“whales”) have been capitalising on the four‑year market correction, further depressing price momentum.
Despite heightened hedging activity, the current demand for downside protection is below the levels seen in prior stress episodes, hinting that some participants may be positioning for a possible short‑term base rather than a full‑scale sell‑off.
Analysis
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Macro pressure outweighs crypto‑specific catalysts. The combination of a hawkish Fed outlook, lingering geopolitical risks, and the natural market‑cycle unwind appears to be the primary driver behind the $73 bn AUM erosion.
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Short‑Bitcoin products as a barometer. The modest inflow into inverse‑Bitcoin funds signals that investors are actively seeking protection against further downside, reinforcing the narrative of a risk‑averse environment.
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Liquidity strain on levered exposures. The $2.5 bn of liquidated longs underscores the vulnerability of highly leveraged positions in a market that is now moving sideways to lower levels.
- Regional divergence suggests selective confidence. While the U.S. market continues to dump crypto assets, pockets of inflow in Europe (Switzerland, Germany) and Asia‑Pacific (Australia, Brazil) may point to region‑specific appetite driven by local regulatory or fiscal factors.
Key Takeaways
- $73 bn AUM loss since Oct 2025 marks the steepest contraction in the sector’s recent history.
- Weekly outflows of $1.7 bn have nullified the YTD gains, leaving a net $1 bn negative flow.
- Bitcoin remains the focal point of both outflows ($1.32 bn) and protective inflows (short‑Bitcoin funds up $14.5 m).
- Macro‑economic headwinds—notably a more hawkish Fed chair and persistent geopolitical uncertainty—are the dominant forces behind the sell‑off.
- Downside‑protection demand is elevated but not yet at crisis levels, suggesting a cautious yet not panic‑driven market stance.
Investors and fund managers will likely continue to monitor central‑bank communications, whale activity, and leveraged exposure metrics as they decide whether to hold, hedge, or further reduce exposure to digital assets in the coming weeks.
Source: https://cryptopotato.com/digital-assets-lose-73b-since-october-2025-highs-coinshares-finds/
