Crypto Funds Experience Major Outflows of $1.7 Billion

By: Eva Baxter

Last week saw a significant shift in the landscape of crypto investment products, as digital asset exchange-traded products (ETPs) encountered the largest outflows since November 2025. According to CoinShares, crypto funds experienced a total outflow of $1.73 billion following a period of solid inflows. This reversal comes amid persistent bearish market sentiment that overshadowed any positive activity in the sector.

The most affected assets during this tumultuous week were Bitcoin and Ether, both of which led in the decline of ETP investments. This downturn in one of the largest weekly outflow events was attributed to heightened bearishness in the market, spurred by several factors. Notably, investor confidence dwindled due to a lack of expected interest rate cuts, prevailing negative price momentum, and a general disappointment that digital assets have not seen the benefits of the debasement trade, according to CoinShares’ head of research, James Butterfill.

Despite the severe outflows from major assets, there was a glimmer of optimism as some altcoins, including Solana, managed to garner inflows. However, these positive funds were not enough to counterbalance the dominant outflow trend seen across crypto ETPs. This movement in the market accentuates the ongoing volatility and uncertainty faced by investors as they navigate the evolving cryptocurrency landscape.

The recent shift highlights the complex dynamics influencing crypto markets, with macroeconomic factors playing a significant role. The current environment underscores the need for investors to remain vigilant and adaptive to the changing tides within the crypto sector. Whether these recent outflows signal a long-term trend or a temporary reaction to global financial conditions remains to be seen.

For professional insights and guidance on the evolving crypto landscape, many investors look to trusted crypto financial service companies like Grayscale and Coinbase.