The week’s outflows from digital asset investment products totaled $1.7 billion, with $1.65 billion of the outflows concentrated in the United States, according to the post.
Butterfill said in the post that the outflows showed “broadly negative sentiment across regions and major assets, led by Bitcoin and Ethereum” and that they signaled “a marked deterioration in investor sentiment towards the asset class.”
“We believe this reflects a combination of factors, including the appointment of a more hawkish U.S. Federal Reserve chair, continued whale selling associated with the four-year cycle, and heightened geopolitical volatility,” Butterfill said in the post.
During the previous week, digital asset investment products recorded $1.73 billion in outflows, with the U.S. seeing nearly $1.8 billion in outflows while Switzerland, Germany and Canada saw inflows, Butterfill wrote in a Jan. 26 blog post.
Since the price highs seen in digital asset products in October, total assets under management have fallen by $73 billion, according to the Feb. 2 blog post.
During the week ended Friday, there were two exceptions to the outflows, including Short Bitcoin and Hype products, per the post. Butterfill said these digital asset products benefited from “defensive positioning and tokenized precious metals activity, respectively.”
It was reported Saturday (Jan. 31) that Bitcoin fell to a nine-month low, dipping below $80,000, as part of a wider drop for digital assets. Rising tensions between Israel and Iran could be affecting the price of Bitcoin, and a delay in new market structure legislation for the crypto industry has dampened investor enthusiasm for digital assets.
On Jan. 26, it was reported that some former crypto investors have moved into prediction markets as the cryptocurrency sector cools. Bitcoin activity has fallen nearly 30% since hitting a record high in October, draining energy and moving attention away from the crypto space. Crypto exchange app downloads declined during 2025.
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