American Investors Lead the Exodus While Germans Quietly Accumulate
Last week saw digital asset funds hemorrhage $446 million, extending a painful retreat that’s now pulled roughly $3.2 billion out of the market since mid-October. The really striking part? According to CoinShares, 103 percent of those withdrawals came from the United States alone—yes, more than the total—meaning American investors yanked out $460 million while small inflows from other regions barely put a dent in the damage.
Switzerland joined the selling party with another $14 million in redemptions, continuing a slow drip that’s defined most European trading desks since late summer. But here’s where things get interesting: German investors are moving in the opposite direction. They poured $36 million into crypto products last week and have now accumulated nearly a quarter-billion dollars since December began. While Americans are heading for the exits, Germans are apparently treating this pullback as a buying opportunity.
Despite all this selling pressure, year-to-date inflows still sit at a healthy $46.3 billion—practically matching all of 2024’s $48.7 billion. Yet here’s the uncomfortable reality: assets under management have only grown about 10 percent since January. In other words, all that fresh money flowing in has barely moved the needle on actual portfolio values. No wonder sentiment surveys keep showing caution even in a year that looks great on paper.
Bitcoin and Ethereum Lose Ground as XRP and Solana Steal the Spotlight
While the old guard suffered, money is clearly rotating into newer options. XRP exchange-traded funds pulled in $70 million last week—their biggest weekly haul yet—bringing total inflows to $1.07 billion in barely two months of existence. Solana funds added another $7.5 million, pushing their own tally to $1.34 billion. Together, these two have captured more than $2.4 billion in capital, which is pretty remarkable considering the broader market mood.
Meanwhile, Bitcoin funds bled $443 million over the same period and have now lost $2.8 billion since mid-October. Ethereum products weren’t much better, dropping another $60 million and sitting $1.6 billion lighter over the past eight weeks. The message is clear: investors are hunting for value beyond Bitcoin and Ethereum, and they’re willing to diversify even when the market feels shaky.
One bright spot worth noting: BlackRock’s spot Bitcoin trust has gathered $25 billion this year, landing it among the world’s top-ten ETFs by inflows—and that’s with Bitcoin trading about 30 percent below its October peak. Analysts point out that if BlackRock can pull in that kind of money during a sluggish market, imagine what might happen when risk appetite really returns.
Market Stuck in a Range, But That Might Set Up a Bigger Move Later
Bitcoin has been ping-ponging between $85,000 and $93,000—its tightest year-end range since 2018—while open interest in Bitcoin and Ethereum perpetual futures dropped by a combined $5 billion last week. QCP Capital is calling this the weakest year-end performance in seven years, blaming thin holiday liquidity and widespread de-risking.
John Glover, Chief Investment Officer at Ledn, thinks the market is working through what Elliott-wave analysts would call a fourth-wave correction that could eventually push as low as $71,000. But his longer-term view is still bullish: he’s targeting $145,000 to $160,000 during a potential fifth wave in 2026 or 2027, as long as Bitcoin holds above that critical $69,000 floor.
Ethereum Shows Some Signs of Life
On the Ethereum side, there’s actually a glimmer of good news. Staking dynamics just turned positive for the first time in six months, with roughly 746,000 ETH waiting to enter staking versus only 361,000 queued to exit. If that imbalance holds, it would reduce the amount of Ethereum floating around available for sale, potentially easing the selling pressure that’s weighed on the asset since early fall.
Put it all together and the picture looks less like capitulation and more like consolidation. American funds are pulling back while Germans are buying. Money is flowing out of Bitcoin and Ethereum but pouring into XRP and Solana. Derivatives leverage is cooling off rather than spiking dangerously. It’s boring right now, sure—but boring with steady institutional interest and low leverage might just be laying the groundwork for whatever comes next.
