Crypto Investment Products Face $1.7 Billion Outflows in Second Week, Year-to-Date Flows Turn Negative

Digital asset investment products have experienced another week of significant withdrawals, with outflows totaling $1.7 billion as investor confidence in the sector continues to decline.

Key Takeaways:

Crypto funds have lost $1.7 billion in just one week, resulting in negative year-to-date flows.
Outflows from U.S. products significantly impacted major assets, with total fund assets dropping by $73 billion from their peak.
While short Bitcoin products saw inflows, average spot ETF buyers are currently at a loss.

According to a recent report from CoinShares, these latest withdrawals have completely negated year-to-date inflows, leading to a net global outflow of $1 billion.

This selling trend reflects adjustments in the market due to a more aggressive stance from the U.S. Federal Reserve, ongoing distribution among large holders tied to the four-year crypto cycle, and increasing geopolitical tensions.

Crypto Investment Products Bleed $1.7B in Second Week of Outflows, YTD Turns Red

U.S. Leads Crypto Fund Asset Decline of $73 Billion Since Peak

Total assets under management in crypto investment products have plummeted by approximately $73 billion since they reached their peak in October 2025, indicating the depth of the current market pullback.

The majority of the outflows have originated from the United States, which saw $1.65 billion flee from U.S.-listed products in the past week alone. Canada and Sweden reported notable withdrawals of $37.3 million and $18.9 million, respectively.

In contrast, some regions in Europe have shown slightly stronger sentiment. Switzerland and Germany both recorded modest inflows, with gains of $11 million and $4.3 million, respectively.

Outflows were widespread among major assets, with Bitcoin products leading the decline and losing $1.32 billion, while Ethereum experienced withdrawals totaling $308 million.

Furthermore, previously popular tokens like XRP and Solana also saw declines, with outflows of $43.7 million and $31.7 million, respectively.

However, short Bitcoin products managed to gain $14.5 million in inflows, resulting in an 8.1% year-to-date increase in assets under management, demonstrating a rising interest in downside protection.

Investment products focused on hype attracted $15.5 million in inflows, capitalizing on an uptick in on-chain activity related to tokenized precious metals.

Notably, Bitcoin is currently trading below the average purchase price of U.S. spot Bitcoin ETFs, following two of the largest outflow weeks recorded last month. According to Alex Thorn, head of research at Galaxy, U.S. spot Bitcoin ETFs now manage approximately $113 billion in assets, holding around 1.28 million BTC.

This means that the average cost of Bitcoin acquired through ETFs is roughly $87,830 per coin, which is significantly higher than current market prices.

“This indicates that the average Bitcoin ETF purchase is currently losing value,” Thorn mentioned in a post that accompanied the data.

Heightened Outflows from Crypto ETFs

Recent weeks have seen a sharp increase in outflows. The 11 U.S. spot Bitcoin ETFs reported approximately $2.8 billion in net redemptions over the past fortnight, with $1.49 billion last week and $1.32 billion the week prior, according to Coinglass.

These ongoing withdrawals mark a notable turnaround compared to the strong inflows that were witnessed late last year.

Despite this downturn, Thorn remarked that institutional investors seem to be maintaining their positions more solidly than what market prices would imply.

Total assets managed by spot Bitcoin ETFs have decreased by about 31.5% from their October peak of around $165 billion, while Bitcoin's price has dropped by nearly 40% during the same period.

Cumulatively, ETF inflows are now only about 12% below their peak, suggesting that long-term holders are not capitulating entirely.