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Crypto ETPs Hit Hard as Bitcoin Drops to $95K and Investors Pull Back
Crypto investment products from major issuers such as BlackRock, Grayscale, and Fidelity have just recorded their biggest weekly outflows since February, with $2 billion leaving global ETPs amid growing uncertainty around monetary policy and increased selling pressure from large crypto-native holders, according to CoinShares.
Three Consecutive Weeks of Redemptions
The withdrawals mark the third straight week of outflows, bringing the three-week total to $3.2 billion. The pullback comes as digital asset prices continue to slide, dragging total assets under management (AuM) down from an early-October peak of $264 billion to just $191 billion.
CoinShares’ head of research James Butterfill noted that shifting expectations around interest rates—combined with whale-driven supply pressure—“continues to weigh on sentiment,” extending a negative downturn that began earlier this month.
U.S. Leads the Sell-Off, Germany Goes Against the Grain
The United States dominated the exodus, accounting for 97% of total outflows, or $1.97 billion. Switzerland followed with $39.9 million leaving crypto ETPs, while Hong Kong saw $12.3 million in outflows.
Germany, however, bucked the global trend. Investors there added $13.2 million into digital asset ETPs, continuing a pattern where German inflows increase during market drawdowns.
Despite the end of the U.S. government shutdown, crypto markets remain under pressure. Bitcoin recently slid to a six-month low near $95,000, its weakest level since early May—signaling that both macroeconomic uncertainty and crypto-native liquidity issues are weighing on sentiment.
Bitcoin and Ethereum Lead Redemptions
Bitcoin ETPs saw $1.38 billion in weekly outflows, extending a three-week streak now equal to roughly 2% of total BTC ETP AuM. Ethereum products faced $689 million in redemptions, representing around 4% of its AuM.
Solana and XRP posted more modest outflows of $8.3 million and $15.5 million, respectively.
Some investors shifted strategies instead of exiting entirely: multi-asset ETPs attracted $69 million in inflows over the past three weeks, while short-bitcoin products saw renewed demand as traders sought downside hedges.
