Crypto exchange traded products experienced their sharpest weekly outflows since February, with investors pulling nearly two billion dollars amid rising uncertainty in global markets. The continued retreat reflects a broader shift toward safer assets and highlights weakening sentiment across major regions.
Outflows Reach Three-Week High
The latest data from CoinShares shows that crypto investment products saw outflows of two billion dollars last week, a steep rise from 1.17 billion dollars the previous week. This marks the third straight week of withdrawals and brings total outflows over this period to 3.2 billion dollars.
James Butterfill, head of research at CoinShares, linked the trend to concerns surrounding monetary policy along with selling pressure from large crypto holders. As a result, total assets under management in crypto ETPs slipped to 191 billion dollars. The figure reflects a 27 percent drop from the October peak of 264 billion dollars.
United States Drives Majority of Withdrawals
The United States accounted for almost the entire wave of redemptions. Outflows reached 1.97 billion dollars, representing 97 percent of the global total. Germany stood out as a rare exception with inflows of 13.2 million dollars, moving against the wider trend.
Crypto ETP flows by country (in millions of US dollars). Source: CoinShares
Several other regions saw significant withdrawals. Switzerland recorded outflows of 39.9 million dollars while Sweden followed with 21.3 million dollars. Hong Kong, Canada and Australia collectively lost 23.9 million dollars from their ETP markets.
Bitcoin and Ether Products Hit Hardest
The downturn affected the largest crypto assets most severely. Bitcoin-based ETPs saw outflows of nearly 1.4 billion dollars last week. The figure represents about two percent of their total assets. Ether investment products faced redemptions of around 700 million dollars which equates to roughly four percent of their assets.
Smaller altcoin products also witnessed losses. Solana ETPs shed 8.3 million dollars while XRP products recorded outflows of 15.5 million dollars.
Investors Shift Toward Diversified Exposure
Despite substantial withdrawals from single asset products, multi asset investment vehicles attracted fresh interest. These diversified ETPs brought in 69 million dollars over the past three weeks which suggests that investors are seeking lower volatility and broader coverage during uncertain conditions.
Short bitcoin ETPs which profit when bitcoin prices fall also recorded inflows of 18.1 million dollars. This indicates a modest rise in hedging activity as traders position themselves for possible downside moves.
Sentiment Weakens Across the Market
The continued outflows reflect a cautious mood among crypto investors. Uncertainty surrounding central bank actions, global risk appetite and activity from large market participants has led many to step back from concentrated crypto exposure. The shift toward diversified baskets and short positions signals an attempt to manage risk while staying engaged with the market.
