Global crypto investment products saw their sharpest weekly pullback since February, with CoinShares reporting that nearly $2 billion left exchange traded products issued by firms including BlackRock, Grayscale, and Fidelity. The redemptions reflect a mix of monetary policy uncertainty and selling from large crypto-native holders, conditions that have weighed on sentiment throughout the past three weeks.
According to CoinShares, total outflows over that period reached $3.2 billion. The slump in prices has also pushed total assets under management down from an early October high of $264 billion to about $191 billion.
James Butterfill, head of research at CoinShares, said shifting rate expectations combined with increased supply from major holders continue to pressure the market. He noted that both factors have extended the negative trend seen since the start of the month.
James Butterfill
The United States led the downturn, accounting for 97 percent of all global outflows at $1.97 billion. Switzerland followed with about $40 million leaving crypto ETPs, while Hong Kong saw roughly $12 million in outflows.
Germany stood out as a clear exception. Investors there added $13.2 million to digital asset products as prices fell. Butterfill said Germany often shows opportunistic buying during market pullbacks, and this week followed that pattern.
Even with the U.S. government shutdown now behind them, crypto markets remain under pressure. Bitcoin dropped to a six month low near $95,000, a level last seen in early May. The decline suggests that both macro conditions and crypto-native liquidity issues are limiting the impact of any expectations for fresh capital returning to markets.
Bitcoin investment products drove most of the withdrawals with $1.38 billion exiting over the past three weeks, equal to about 2 percent of total assets in those products. Ethereum saw $689 million in outflows, which amounts to roughly 4 percent of its assets under management. Solana and XRP products experienced smaller pullbacks of $8.3 million and $15.5 million.
Not all investors moved to the exits. Multi asset ETPs attracted $69 million over the same period as some traders looked for broader diversification during the selloff. Short bitcoin products also saw continued inflows as participants increased hedges against further declines.
