Crypto ETPs Face Largest Weekly Outflows Since February, Losing $2 Billion

Global investors pulled $2 billion from crypto exchange-traded products last week, marking the biggest weekly outflow since February. Rising uncertainty and cautious sentiment drove asset managers to safer investment options.

According to CoinShares, crypto ETPs experienced $2 billion in outflows last week, a nearly 71% increase from $1.17 billion the previous week. This streak extends three consecutive weeks of redemptions, bringing cumulative outflows to $3.2 billion.

James Butterfill, head of research at CoinShares, attributed the trend to ongoing monetary policy uncertainty and significant selling by crypto-native whales. As a result, total assets under management in crypto ETPs dropped to $191 billion, down 27% from October’s peak of $264 billion.

The United States led the sell-off, accounting for $1.97 billion of outflows, or 97% of the total. Germany bucked the trend, recording $13.2 million in inflows despite the global decline.

Crypto ETPs faced losses across other major markets as well. Switzerland and Sweden saw outflows of $39.9 million and $21.3 million, respectively. Hong Kong, Canada, and Australia experienced combined outflows of $23.9 million.

Bitcoin- and Ether-based ETPs suffered the largest losses. Bitcoin ETPs saw nearly $1.4 billion exit, representing roughly 2% of their total AUM. Ether ETPs lost $700 million, about 4% of assets under management. Smaller crypto products were also affected, with Solana and XRP ETPs recording $8.3 million and $15.5 million in outflows, respectively.

While single-asset ETPs were under pressure, multi-asset crypto funds attracted fresh investments. CoinShares reported $69 million in inflows to multi-asset ETPs over the past three weeks, indicating that investors are seeking broader coverage and lower volatility.

Short-Bitcoin ETPs, which profit from declines in Bitcoin, also saw $18.1 million in inflows. The trend points to growing hedging activity as investors navigate heightened market uncertainty.