Crypto Investment Funds Face Record $2.9B Outflow Amid Market Uncertainty
Global crypto investment products managed by industry giants such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced record net outflows of $2.9 billion last week, according to data from CoinShares.
Market Uncertainty Sparks Profit-Taking
Several factors contributed to this significant downturn, CoinShares Head of Research James Butterfill noted in a report released Monday. The recent Bybit exchange hack, a more hawkish stance from the Federal Reserve, and a 19-week inflow streak totaling $29 billion likely fueled a mix of profit-taking and waning investor confidence in the crypto market.
This marks the third consecutive week of outflows, now amounting to $3.8 billion. However, Friday provided a glimmer of hope, as U.S. spot Bitcoin ETFs snapped an eight-day streak of net outflows. Investors are now watching closely to see how the Trump administration’s Crypto Strategic Reserve announcement—which triggered a price rebound—will impact future fund flows.
Bitcoin ETFs Rebound as Market Finds Support
Following two weeks of heavy selling, Bitcoin ETFs recorded $94 million in inflows on Friday, signaling a shift in sentiment even before Trump’s announcement.
“This suggests that investors saw Bitcoin as undervalued and began re-entering the market,” said Valentin Fournier, an analyst at BRN. “With renewed demand and positive momentum, Bitcoin is likely to push towards new highs—especially as the Presidential Working Group begins implementing the crypto reserve initiative.”
As usual, the bulk of the outflows came from U.S.-based funds, which saw $2.87 billion withdrawn. Crypto investment products in Switzerland and Canada also experienced declines, with $73 million and $16.9 million in outflows, respectively. Meanwhile, German investors bucked the trend, adding $55.3 million to crypto funds last week.
Bitcoin and Ethereum See Sharp Outflows, While Sui and XRP Shine
Bitcoin investment products bore the brunt of last week’s exodus, shedding $2.59 billion. Conversely, short-Bitcoin funds saw $2.3 million in inflows, reflecting a cautious outlook among some traders.
Bitcoin’s price tumbled 18.7% last week, plummeting from $96,294 to a low of $78,289, before rebounding on Sunday following Trump’s crypto policy announcement.
Ethereum-based funds also faced substantial outflows, recording a weekly loss of $300 million—a new high for ETH-related products. Meanwhile, TON and Solana funds struggled as well, registering $22.6 million and $7.4 million in net outflows, respectively.
On a more positive note, Sui-based investment products stood out as the best performers, attracting $15.5 million in inflows, while XRP products continued their strong run, adding $5 million to their holdings.
Looking Ahead
While the past three weeks have been challenging for crypto investment products, recent signs of renewed interest in Bitcoin ETFs and the policy shift in the U.S. could provide a turning point. Investors will now be watching whether this nascent recovery can sustain itself amid broader economic and regulatory uncertainties.
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