Crypto investment products lose $1.7 billion in second week of outflows, year-to-date turns red

Digital asset investment products recorded a second consecutive week of strong outflows, losing a total of $1.7 billion as investor confidence in the sector continued to deteriorate.

The latest withdrawals have completely reversed year-to-date inflows, pushing net global flows to an outflow of $1 billion, according to a recent report from CoinShares.

The resumption of selling comes as markets adjust to the US Federal Reserve’s more hawkish outlook, continued large shareholder distribution tied to the four-year crypto cycle, and growing geopolitical uncertainty.

Crypto fund assets have fallen $73 billion since peak as US leads exits

Since the October 2025 peak, total assets under management in crypto investment products have fallen by approximately $73 billion, highlighting the scale of the decline.

Regionally, the United States accounted for the vast majority of exits, with $1.65 billion of U.S.-listed products leaving last week.

Canada and Sweden also saw notable withdrawals of $37.3 million and $18.9 million, respectively.

In contrast, sentiment in parts of Europe was slightly more resilient, with Switzerland and Germany seeing modest inflows of $11 million and $4.3 million.

Capital outflows were widespread across the main assets. Bitcoin products led the decline, losing $1.32 billion, while Ethereum saw $308 million withdrawn.

Tokens that saw strong interest earlier in the cycle were not spared, with XRP and Solana seeing outflows of $43.7 million and $31.7 million, respectively.

One exception is short Bitcoin products, which saw $14.5 million in inflows and saw assets under management increase 8.1% year-to-date, suggesting growing demand for downside protection.

Hype-driven investment products also attracted $15.5 million in inflows, benefiting from a recent surge in on-chain activity related to tokenized precious metals.

Notably, Bitcoin is currently trading below the average cost basis of U.S. spot Bitcoin ETFs after the products recorded their second and third largest weekly outflows on record last month, according to research by Alex Thorn, head of research at Galaxy.

US spot Bitcoin ETFs now manage approximately $113 billion in assets and collectively hold approximately 1.28 million BTC.

This puts the average purchase price of Bitcoin held by the ETF at around $87,830 per coin, well above current market levels.

“This means the average Bitcoin ETF purchase is underwater,” Thorn said in a post shared alongside the data.

Crypto ETF outflows accelerate

The releases have accelerated in recent weeks. The 11 U.S. spot Bitcoin ETFs saw about $2.8 billion in net redemptions over the past two weeks, including $1.49 billion last week and $1.32 billion the week before, according to Coinglass.

These sustained withdrawals mark a clear reversal from the strong inflows recorded at the end of last year.

Despite the decline, Thorn said institutional investors appear to be holding on to their positions better than price action suggests.

Total assets under management for spot Bitcoin ETFs have fallen about 31.5% from their October peak of around $165 billion, while the price of Bitcoin is down nearly 40% over the same period.

However, cumulative ETF inflows are only about 12% below their peak, indicating outright capitulation on the part of longer-term holders.

The post Crypto Investment Products Lost $1.7 Billion in Second Week of Outflows, Year-To-Date Turns Red appeared first on Cryptonews.

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