Last week saw a sharp reversal in capital flows into cryptocurrency exchange-traded products (ETPs), with investors withdrawing roughly $1.7 billion from these investment vehicles — the largest weekly outflow since mid-November 2025. After several weeks of positive momentum and inflows, this sudden downturn highlights a notable shift in investor sentiment amid ongoing market pressures.
Market analysts attribute the broad sell-off to a combination of declining expectations for future interest-rate cuts, continued weak price performance across major cryptocurrencies, and growing frustration that digital assets have not yet benefited from macroeconomic trends that have supported other risk assets. As a result, many institutional and retail investors chose to scale back their exposure to crypto-related investment products during the period.
The withdrawals were heavily concentrated in the most widely held products. Bitcoin-based ETPs recorded approximately $1.09 billion in outflows, while Ethereum-focused funds saw around $630 million leave, together accounting for the majority of the total capital exit. This pattern suggests ongoing caution toward large-cap digital assets despite their dominant position in the market.
That said, the pullback was not uniform across all crypto assets. A small number of altcoin-linked products, including those tied to Solana, managed to attract modest inflows, indicating selective investor interest even during a broader risk-off phase. Other smaller digital asset funds also experienced limited but positive movement.
On the issuer side, major providers such as BlackRock’s iShares, Fidelity, and Grayscale all reported meaningful redemptions, showing that the shift in sentiment affected both newer and more established crypto investment products. As a result of these outflows and market price declines, total assets under management across crypto ETPs dropped significantly, falling from roughly $193 billion to about $178 billion by the end of the week.
Weekly crypto ETP flows by asset as of Friday (in millions of US dollars). Source: CoinShares
From a regional perspective, U.S.-listed products accounted for the majority of the withdrawals, while some markets in Europe and Canada recorded small net inflows, suggesting regional differences in investor behavior and risk appetite.
Overall, the data marks a clear pause — and possible reversal — in the recent wave of optimism surrounding crypto investment products. It reinforces the reality that digital asset markets remain highly sensitive to macroeconomic signals, monetary policy expectations, and broader shifts in investor confidence.
Source: Cointelegraph Edited by Sonarx