The institutional cryptocurrency market recently experienced a sharp correction, recording a staggering $1.2 billion in net outflows over a...
The institutional cryptocurrency market recently experienced a sharp correction, recording a staggering $1.2 billion in net outflows over a single week. This represents the second consecutive weekly decline and the second-largest weekly outflow recorded since March, signalling a shift in institutional sentiment amidst market saturation concerns.
Bitcoin and Ethereum Lead the Retreat
The massive outflow was heavily concentrated in the two largest digital assets by market capitalization:
Bitcoin (BTC): Led the retreat with $932 million in outflows from Bitcoin-focused funds.
Ethereum (ETH): Followed with a significant $438 million withdrawal.
The large-scale institutional selling reflects growing pressure on companies that have historically focused on stockpiling major cryptocurrencies.
Solana Defies the Trend
In stark contrast to the institutional selling in Bitcoin and Ethereum funds, the Solana (SOL) network managed to attract significant capital, registering $118 million in inflows last week. This momentum is part of a larger trend, with Solana funds accumulating a staggering $2.1 billion over the last nine weeks, indicating that some institutional money is rotating into alternative, high-growth tokens.
Interestingly, short Bitcoin products also saw notable action, recording $12 million in inflows—the highest amount since May 2025. This suggests that some investors are actively hedging against or betting on further near-term price declines for Bitcoin.
The Strain on Digital Asset Treasury (DAT) Companies
The broader market volatility is putting pressure on Digital Asset Treasury (DAT) companies, which multiplied rapidly, inspired by the success of firms like MicroStrategy. Many of these companies, which stockpile crypto in hopes of appreciation, are now seeing their stock prices wobble as Bitcoin flags.
The situation has created market saturation, pushing new entrants and some existing firms away from major cryptocurrencies and toward more esoteric, volatile tokens in a bid to amplify returns. This shift comes as at least 15 Bitcoin treasury companies were recently reported to be trading at a value below the net asset value of their crypto holdings, reflecting a significant drop in investor premium.
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