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Crypto funds bleed for fourth straight week as US investors pull back

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Crypto funds bleed for fourth straight week as US investors pull back - 1

Crypto funds recorded a fourth consecutive week of outflows, with $173 million withdrawn, according to CoinShares’ latest weekly fund flows report.

Summary

  • Digital asset investment products saw $173 million in outflows, marking a fourth consecutive week of withdrawals and bringing the four-week total to $3.74 billion.
  • The US led the downturn with $403 million in outflows, while Europe and Canada recorded $230 million in combined inflows, highlighting sharp regional divergence.
  • Bitcoin and Ethereum bore the brunt of selling, while XRP and Solana continued to attract capital.

The latest decline brings total outflows over the past four weeks to $3.74 billion, underscoring persistent investor caution amid price weakness and macro uncertainty.

The week began on a stronger footing, with $575 million in inflows, but sentiment quickly reversed. Midweek outflows reached $853 million, likely driven by further downside in crypto prices. Conditions improved slightly on Friday after weaker-than-expected US CPI data, which helped trigger $105 million in inflows.

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Trading activity also cooled. Exchange-traded product (ETP) volumes fell sharply to $27 billion, down from a record $63 billion the previous week.

US leads crypto fund outflows as Europe and Canada diverge

Regional data revealed a stark divergence in sentiment. The United States accounted for $403 million in outflows, while other regions collectively posted $230 million in inflows.

Germany led with $115 million in inflows, followed by Canada ($46.3 million) and Switzerland ($36.8 million). The data suggests that while US investors remain risk-off, appetite for digital assets persists in parts of Europe and North America.

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Crypto funds bleed for fourth straight week as US investors pull back - 1

Bitcoin and Ethereum under pressure, altcoins show resilience

Bitcoin (BTC) bore the brunt of the sell-off, with $133 million in outflows last week. Ethereum (ETH) followed with $85.1 million in withdrawals.

Interestingly, short Bitcoin products also saw outflows totaling $15.4 million over the past two weeks, a pattern CoinShares notes is often observed near potential market bottoms.

Crypto funds bleed for fourth straight week as US investors pull back - 2

In contrast, select altcoins continued to attract capital. The Ripple token (XRP) led with $33.4 million in inflows, followed closely by Solana (SOL) and Chainlink (LINK). The selective resilience suggests investors are rotating exposure rather than exiting the asset class entirely.

Despite the recent drawdown, total assets under management remain substantial, highlighting that institutional engagement in digital assets continues even amid short-term volatility.

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Crypto World

Vitalik Buterin: You Don’t Need to Agree With Me to Use Ethereum

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Buterin confirms users need no alignment with his views on AI, DeFi, or culture to use Ethereum. 
  • He argues calling an app “corposlop” is free speech, not censorship, under Ethereum’s open framework. 
  • Buterin warns that pretend neutrality weakens values, urging crypto builders to state principles clearly. 
  • He compares Ethereum to Linux, saying a full-stack value-aligned ecosystem must exist alongside the protocol.

 

Ethereum co-founder Vitalik Buterin has issued a wide-ranging statement on personal views, free speech, and decentralized protocols.

He made clear that users do not need to share his opinions to participate in the Ethereum network. At the same time, he firmly asserted his right to openly criticize applications he disagrees with.

His remarks draw a firm line between protocol neutrality and individual expression within the broader ecosystem.

Ethereum Belongs to No Single Voice

Buterin opened his statement by listing several areas where he holds strong personal views. He wrote, “You do not have to agree with me on political topics to use Ethereum,” adding the same applies to his views on DeFi, AI, and even cultural preferences.

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He noted that agreement on none of these topics is required to use Ethereum. This reflects the core promise of a permissionless system.

He was direct in stating that Ethereum is a decentralized protocol. As such, no single person — including himself — speaks for the entire ecosystem.

He noted that “the whole concept of permissionlessness and censorship resistance is that you are free to use Ethereum in whatever way you want.” Users are free to build and transact without seeking approval from any central figure.

However, Buterin acknowledged that his individual voice still carries weight in public discourse. He separated his personal commentary from any form of network-level control.

The distinction, he argued, is essential to understanding what decentralization actually means in practice.

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Free Speech Carries Responsibility in Crypto

Buterin addressed the tension between criticism and censorship directly in his post. He stated clearly, “If I say that your application is corposlop, I am not censoring you.”

The network remains open regardless of what he says about any project. This, he argued, is the grand bargain of free speech.

Furthermore, he pushed back against what he described as false neutrality. He wrote that “the modern world does not call out for pretend neutrality, where a person puts on a suit and claims to be equally open to all perspectives.”

Instead, he called for the courage to state principles clearly and to point to negative examples when needed. Criticism, in his view, is a civic responsibility, not an attack.

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He also noted that principles cannot remain at the protocol layer alone. He argued that “valuing something like freedom, and then acting as though it has consequences on technology choices, but is completely separate from everything else about our lives, is not pragmatic — it is hollow.” Staying silent on broader social questions, he said, weakens the values themselves.

The Linux Parallel and Full-Stack Value Systems

To illustrate his point, Buterin drew a direct comparison to Linux. He noted that “Linux is a technology of user empowerment and freedom,” yet it also serves as “the base layer of a lot of the world’s corposlop.” The same base layer can serve very different ends. Ethereum, he said, operates the same way.

Because of this, he argued that building the protocol is not enough. He wrote that “if you care about Linux because you care about user empowerment and freedom, it is not enough to just build the kernel.”

A full-stack ecosystem aligned with specific values must also exist alongside it. That ecosystem will not be the only way people use Ethereum, but it must remain available.

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He closed by noting that the borders of any shared value framework are naturally fuzzy. He acknowledged that “it is possible, and indeed it is the normal case, to align with any one on some axes and not on other axes.” Ethereum, like Linux, will always serve many communities and value systems at once.

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Bitcoin Sentiment Hits Lows Amid Oversold Signals

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Bitcoin Sentiment Hits Lows Amid Oversold Signals

Crypto market sentiment has fallen to extreme lows and could lead to a “durable bottom” that exhausts selling pressure, according to analysts at crypto financial services firm Matrixport. 

“Sentiment has fallen to extremely depressed levels, reflecting broad pessimism across the market,” said Matrixport in a note on Tuesday. 

Matrixport’s own Bitcoin (BTC) “fear and greed index” suggests that “durable bottoms” form when the 21-day moving average drops below zero and reverses higher, which is currently the case.

“This transition signals that selling pressure is becoming exhausted and that market conditions are beginning to stabilize.” 

However, Matrixport cautioned that prices could still fall further in the near term. Historically, these deeply negative sentiment readings have offered attractive entry points, they said. 

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“Given the cyclical relationship between sentiment and Bitcoin price action, the latest reading suggests the market may be approaching another inflection point,” it stated.

Bitcoin sentiment hits extreme lows. Source: Matrixport

Crypto market sentiment at four-year lows

Previous periods when the Matrixport sentiment metric was this low were around June 2024 and November 2025, following periods of steep market declines. 

Alternative.me’s “Fear and Greed Index” is also around its lowest level since June 2022, with a reading of 10 out of 100 indicating “extreme fear.” 

Related: Bitcoin down 22%, could it be the worst Q1 since 2018?

If Bitcoin closes February in the red, it will print five straight monthly losses in the longest streak since 2018, and one of the steepest sustained sell-offs in history.  

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Bitcoin is at historic oversold levels 

Frank Holmes, chairman of Bitcoin mining firm Hive, said on Monday that Bitcoin is now roughly two standard deviations below its 20-day trading norm. “This is a level we’ve seen only three times in the past five years,” he said. 

“Historically, such extremes have favored short-term bounces over the subsequent 20 trading days,” he explained.  

“Despite the ongoing market jitters, I remain bullish in the long term because the fundamentals still look strong.”

BTC is in historic oversold territory, creating opportunity. Source: Hive

Magazine: Coinbase misses Q4 earnings, Ethereum eyes ‘V-shaped recovery’: Hodler’s Digest