What to Know
- Crypto investment products saw $1.7B in weekly outflows, pushing 2025 flows into a net $1B outflow.
- Bitcoin led exits with $1.32B, followed by Ethereum at $308M, with most withdrawals from the U.S.
- Short Bitcoin and tokenized metals funds saw small inflows as investors turned defensive.
Crypto investment products saw heavy money exits last week, with investors pulling out about $1.7 billion, according to a new industry report. The sharp withdrawals were mainly from Bitcoin and Ethereum funds and show that investor mood has turned more cautious in recent weeks. This marks the second straight week of outflows and has now pushed total flows for the year into negative territory.
Weekly Pullback
Digital asset investment products recorded $1.7 billion in outflows during the week. That means more money left these funds than entered them. Because of these back-to-back withdrawals, the total flow for the year has now flipped to a net outflow of about $1 billion. Just a few months ago, flows were positive. The report notes that total assets under management have dropped by around $73 billion since their peak in October 2025.
Researchers linked the shift to weaker investor confidence and growing uncertainty in global markets. “We are seeing a clear deterioration in investor sentiment toward digital assets,” the report said. Most of the outflows came from the United States, which alone accounted for about $1.65 billion in withdrawals. Other countries also saw money leaving crypto funds, though at smaller levels. Canada recorded outflows of about $37 million, while Sweden saw roughly $19 million leave its crypto products. On the other hand, Switzerland and Germany saw small inflows of $11 million and $4 million, respectively, making them rare exceptions.
BTC and ETH Saw the Largest Exits
Bitcoin investment products were hit the hardest, with about $1.32 billion in outflows during the week. Ethereum products followed with about $308 million in withdrawals. Other popular crypto assets also saw money leave. XRP funds recorded about $44 million in outflows, while Solana products saw around $32 million pulled out.
The report said selling pressure was broad and not limited to just one or two assets. Market watchers believe several factors are behind this trend, including a stricter tone from the US Federal Reserve, large holders selling their crypto, and rising geopolitical tensions around the world. One analyst note in the report said, “A more hawkish outlook from the Federal Reserve, continued large-holder selling, and geopolitical risks have all weighed on investor confidence.”
Short Bitcoin and Tokenized Metals
While most crypto investment products saw outflows, a few categories attracted fresh money. Short Bitcoin products which are designed to gain when Bitcoin’s price falls recorded inflows of about $14.5 million. This suggests some investors are actively positioning for further price drops or using these products as protection.
Assets under management in short Bitcoin products are now up about 8% since the start of the year. Another bright spot was so-called “Hype” investment products, which brought in about $15.5 million in inflows. These products benefited from growing activity in tokenized precious metals, digital tokens linked to metals like gold and silver. The report described this as “defensive positioning,” where investors move toward assets seen as more stable during uncertain times.
Final Thoughts
Overall, the latest data shows that crypto investors are becoming more cautious after strong highs last year. Falling prices, policy uncertainty, and global tensions are pushing many to reduce exposure. Even with the recent pullback, analysts say this looks more like a sentiment shift than a full market collapse.
“Fund flows point to a more cautious investor stance rather than a breakdown in fundamentals,” the report noted. For now, market participants will be watching whether outflows continue in the coming weeks or if confidence returns once macro and political conditions become clearer.
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