Digital Asset Investment Funds Experience $223 Million Loss
Digital asset investment funds lost $223 million in the week ending August 2, 2025, according to CoinShares. It was the first weekly outflow in 15 weeks. The shift came after early inflows of $883 million were reversed when the U.S. Federal Reserve signaled that interest rates may remain higher for longer.
The Federal Reserve’s comments last week suggested that inflation remains a concern and that borrowing costs are unlikely to fall soon. Higher rates usually reduce investor appetite for risk assets, since safer interest‑bearing products become more attractive. Cryptocurrencies, which are often seen as higher‑risk investments, were among the first to feel the effect. CoinShares reported that more than $1 billion left digital asset funds on Friday alone, showing how quickly sentiment turned after the Fed’s guidance.
Bitcoin Faces its Largest Weekly Withdrawal Since April
Bitcoin (BTC) bore most of the outflows, with $404 million withdrawn, the largest weekly figure since April, when $245 million exited. The withdrawals pushed Bitcoin’s price down from about $122,000 in mid-July to $115,266 by August 2. Even with the drop, Bitcoin’s year‑to‑date inflows stand at more than $20 billion, and its funds hold $174 billion in assets, keeping it the dominant asset in the sector.
Ethereum (ETH) did not follow Bitcoin’s trend. It attracted $134 million in inflows, continuing a 15‑week streak of positive flows. Its assets under management rose to $27.5 billion, and inflows for the year are close to $7.9 billion. Ethereum’s price climbed from $3,530 in late July to $3,685 on August 2. Analysts link the steady demand to Ethereum’s growing use in decentralized finance and the appeal of staking for institutional investors, which may be less directly affected by interest rate changes than Bitcoin.
Altcoins Add Small But Steady Support
Several altcoins also gained new capital. XRP (XRP) saw $31 million in inflows, supported by progress in payment adoption. Solana (SOL) added $8.8 million, with allocations tied to its expanding decentralized finance network and NFT activity. Cardano (ADA) brought in $1.3 million, while smaller inflows went into Aave (AAVE) and Sui (SUI). Though the amounts were small compared to Bitcoin and Ethereum, they helped reduce the scale of overall market outflows.
The United States recorded $383 million in outflows, by far the largest among all regions. The sharp withdrawals matched the timing of the Fed’s comments, showing how sensitive U.S. investors are to interest rate expectations. In contrast, Hong Kong funds gained $170 million, helped by strong demand for newly launched spot crypto exchange‑traded funds. Switzerland added $52 million, while Germany and Sweden posted outflows of $36 million and $33 million.
Despite last week’s setback, digital asset funds have attracted $12.2 billion in the past 30 days, nearly half of all inflows this year. Total inflows in 2025 now stand at $29.3 billion, and assets under management reached $215 billion at the end of the week. CoinShares described the recent withdrawals as profit‑taking after a sustained rally, rather than a sign of weakening demand.