According to CoinShares’ latest weekly report, digital asset investment products faced a significant setback, with outflows totaling $126 million last week.

Bitcoin accounted for a large portion of these outflows, representing 87% of the total net flow for the week. CoinShares Head of Research James Butterfill attributed this trend to investors adopting a cautious approach following the market's loss of price momentum.

ETF/ETP trading activity declined compared to the broader market, with total volume reaching only 31% last week. However, there was a slight week-on-week increase in volume from $17 billion to $21 billion.

Ethereum experienced its fifth consecutive week of outflows, totaling $28.7 million. Its month-to-date flow now stands at negative $51.3 million, with a year-to-date flow of only $23 million, suggesting a potential erosion of its gains for the year.

Several Bitcoin investment products, such as Grayscale GBTC, ProShares BITO, and Purpose ETF, primarily drove the outflows, with their cumulative flows almost reaching $1 billion.

In contrast, inflows from BlackRock IBIT, Fidelity FBTC, and Ark 21Shares ARKB partially offset the outflows, leaving Bitcoin products with a total outflow of $110 million for the week.

Regionally, the US saw the largest outflows totaling $145 million, followed by Switzerland and Canada with $5.7 million and $6 million outflows, respectively. However, investors in Germany saw recent price weakness as an opportunity, resulting in $29 million inflows last week.

Solana experienced outflows of $3.6 million, while multi-asset products recorded $5.6 million in outflows.

Short Bitcoin witnessed a reversal in its trend with $1.7 million in inflows after three consecutive weeks of outflows, suggesting a resurgence of bearish sentiment amid significant market volatility.

On a positive note, several altcoins attracted positive flows. Litecoin, XRP, and Polkadot saw inflows of $1.6 million, $300,000, and $800,000, respectively. Even lesser-known altcoins like Decentraland, Basic Attention Token, and LIDO witnessed inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.