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- Crypto funds logged $1.7B in outflows, reversing all year-to-date institutional inflows.
- Bitcoin, Ethereum, XRP, and Solana products saw broad redemptions across major regions.
- US spot Bitcoin ETFs trade below cost basis as redemptions accelerate for a second week.
Crypto investment products faced another week of major withdrawals. Total outflows hit $1.7 billion, marking the second straight weekly decline. The selling erased all inflows recorded earlier this year. Net global flows now stand at $1 billion in total outflows, according to a report by CoinShares.
Global sentiment weakened as markets reacted to a more hawkish U.S. Federal Reserve stance. Analysts also pointed to large-holder distribution tied to the ongoing four-year crypto cycle. Growing geopolitical uncertainty added further pressure and reduced broader risk appetite across investors.
Crypto AUM Drops $73B as Global Withdrawals Intensify
Total assets under management for crypto investment products have dropped sharply. Since reaching their peak in October 2025, these products have lost $73 billion in value. The decline highlights the scale of the market retreat and the continued pullback in institutional exposure.
The United States led global withdrawals. U.S.-listed products saw $1.65 billion in outflows last week. Canada followed with $37.3 million in redemptions, while Sweden posted $18.9 million in withdrawals. Switzerland and Germany recorded modest inflows of $11 million and $4.3 million, showing selective accumulation.
Outflows extended across major assets. Bitcoin products recorded $1.32 billion in withdrawals. Ethereum saw $308 million exit its investment products. XRP and Solana products also faced selling, with $43.7 million and $31.7 million withdrawn during the week.
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Short Bitcoin products moved in the opposite direction. These products attracted $14.5 million in inflows as investors positioned for additional downside moves. Assets under management for these products have risen 8.1% this year, reflecting increased demand for hedging tools.
Bitcoin ETFs Under Pressure as $2.8B Exits in Two Weeks
Pressure intensified on U.S. Bitcoin ETFs that track spot prices. Market data showed the funds recorded their second- and third-largest weekly outflows last month. Bitcoin now trades below the average cost basis of U.S. ETF holdings, according to research from Galaxy’s Alex Thorn.
U.S. spot Bitcoin ETFs collectively manage $113 billion in assets. They hold about 1.28 million BTC. The average purchase price sits near $87,830 per coin. Current market levels remain below that basis, placing the average ETF position at a loss.
The outflows from spot Bitcoin exchange-traded funds in the US have picked up in recent times. The spot Bitcoin ETF has seen an outflow of $2.8 billion in the last two weeks. Last week, these ETFs saw an outflow of $1.49 billion, while in the preceding week, it was $1.32 billion.
Despite this, it seems that the institutional positions are holding up. The exchange-traded fund assets have seen a 31.5% drop from their peak in October. The price of Bitcoin has seen a drop of 40% during this time. The ETF inflows are 12% lower than their peak.
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