Digital asset investment products gathered a total of $47.2 billion globally by the end of 2025, slightly below the previous year’s record of $48.7 billion. The year’s performance began on a strong note, with inflows of $671 million reported just last Friday.

This led to a total of $582 million in inflows for the week, following earlier outflows.

Smaller Altcoins Lagging Behind

According to the CoinShares’ Digital Asset Fund Flows 2025 Report, Bitcoin experienced a significant drop in inflows, falling 35% to $26.9 billion during the year. The decrease in Bitcoin’s price also drove $105 million into short-bitcoin investment products, making this a small segment, totaling $139 million in assets.

In contrast, Ethereum topped the market with $12.7 billion, marking a 138% increase relative to 2024. Noteworthy also are XRP and Solana, with inflows of $3.7 billion (an astounding 500% increase) and $3.6 billion (up 1,000%), respectively. Other altcoins faced dwindling interest, suffering a 30% year-on-year drop to $318 million.

On a brighter note, Sui raised $152 million, Chainlink accumulated $22 million, and ZCash garnered $17 million, while Litecoin achieved only $1 million over the year. Overall, investor interest shifted primarily towards Ethereum, XRP, and Solana, pushing smaller cryptocurrencies to the sidelines. Meanwhile, multi-asset products saw an outflow of $214 million.

In 2025, the United States remained a leading beneficiary of digital asset investments, drawing in $42.5 billion, although this marked a 12% decrease from 2024. Germany surged ahead, attracting $2.5 billion contrasted with a $43 million outflow in the previous year. Canada also rebound, reporting $1.1 billion in inflows after experiencing $603 million in outflows in 2024. Switzerland saw moderate improvements with $775 million, up 11.5% year-on-year. Following were Hong Kong, with $293 million; the Netherlands, at $194 million; and France, with $128 million. Additionally, the Cayman Islands and Luxembourg recorded $42 million and $32 million, respectively.

Conversely, Sweden faced a loss of $775 million, and Brazil experienced negligible outflows of $1 million.

A Healthier Outlook for Bitcoin?

Despite the tumultuous price fluctuations and prevailing negative sentiment, analyst Markus Thielen posits that Bitcoin is on track to commence 2026 equipped with a cleaner and healthier market position after a significant unwind in leverage seen since last year’s October peak. Thielen noted that almost $30 billion in Bitcoin and Ethereum futures leverage has been retracted, reducing speculative excess and crowded positions.

With investors entering the new year holding lighter portfolios, the market is poised to reset and respond more organically. Thielen indicates that this leaner stance alleviates the pressure created by excessive leverage, thereby allowing Bitcoin to reflect genuine demand rather than react to enforced liquidations. Consequently, Bitcoin could follow a more natural price trajectory, likely indicating upward movement.