Investor appetite for crypto investment products continued to cool last week, with digital asset funds recording another $1.7 billion in net outflows, according to the latest data from CoinShares. The figure marks a second straight week of heavy withdrawals and brings total year-to-date flows to a net global outflow of about $1 billion.
The sustained exodus has taken a visible toll on the sector’s size. Assets under management across global crypto funds have fallen by roughly $73 billion since reaching a peak in October 2025, underscoring the depth of the current downturn in sentiment.
James Butterfill, Head of Research at CoinShares, said the acceleration in outflows reflects a mix of broader economic pressures and crypto-specific dynamics. He pointed to the appointment of a more hawkish U.S. Federal Reserve chair, ongoing large-scale selling by long-term holders consistent with crypto’s four-year market cycle, and rising geopolitical uncertainty as key factors weighing on investor confidence.
“Investor sentiment deteriorates as outflows accelerate,” Butterfill noted in the report.
U.S. leads withdrawals as Bitcoin bears the brunt
Geographically, the pullback was heavily concentrated in the United States, which accounted for $1.65 billion of last week’s outflows. Canada and Sweden also saw notable withdrawals of $37.3 million and $18.9 million, respectively. In contrast, funds domiciled in Switzerland and Germany recorded modest inflows of $11 million and $4.3 million, suggesting pockets of resilience in parts of Europe.
Across assets, Bitcoin-focused products absorbed the largest share of redemptions. Bitcoin funds, including BlackRock’s IBIT, saw $1.32 billion in outflows over the week. Ethereum-based products followed with $308 million in net withdrawals.
Other major tokens were not immune. Funds linked to XRP and Solana posted outflows of $43.7 million and $31.7 million, respectively, as investors broadly reduced exposure to riskier digital assets.
Defensive positions gain modest traction
A small number of products moved against the prevailing trend. Short bitcoin investment products attracted $14.5 million in inflows, lifting their year-to-date assets under management by 8.1%. CoinShares said this reflected more defensive positioning as prices declined.
Products linked to Hype-related strategies also saw $15.5 million in inflows, supported by increased onchain activity associated with tokenized precious metals.
The shift in fund flows has coincided with sharp price declines across the market. Over the past week, bitcoin fell by roughly 12%, while ether dropped about 22%, highlighting the challenging environment facing both investors and asset managers.
