Crypto funds extend exodus with another $1.7 billion in weekly outflows as 'investor sentiment deteriorates': CoinShares

Global crypto investment products offered by asset managers like BlackRock, Grayscale, Fidelity, and Bitwise have seen investor sentiment deteriorate further, with outflows accelerating for a second consecutive week, according to CoinShares.

Crypto funds recorded another $1.7 billion in net outflows last week, leaving year-to-date flows at a net global outflow of $1 billion, CoinShares said in its latest weekly report. Similarly, funds offering exposure to digital assets logged $1.7 billion in weekly redemptions the week prior, as The Block previously reported.

The sustained withdrawals have also weighed on assets under management, which have declined by $73 billion since peaking in October 2025. James Butterfill, head of research at CoinShares, attributed the shift in sentiment to a combination of macro and market-specific pressures, including the appointment of a more hawkish U.S. Federal Reserve chair, continued whale selling linked to crypto’s four-year cycle, and heightened geopolitical uncertainty.

“Investor sentiment deteriorates as outflows accelerate,” Butterfill stated.

Flows cluster around Bitcoin and the US

Once again, outflows were overwhelmingly concentrated in the United States, accounting for $1.65 billion of last week’s withdrawals. Funds in Canada and Sweden also posted net outflows of $37.3 million and $18.9 million, respectively, while products in Switzerland and Germany saw modest inflows of $11 million and $4.3 million.

While the retreat has spanned most major digital assets, Bitcoin BTC bore the brunt of massive redemptions. Bitcoin-based funds, led by BlackRock's IBIT, recorded $1.32 billion in weekly outflows, while Ethereum ETH products saw $308 million in outflows. Recent market favorites XRP and Solana also were unable to buck the trend last week, posting net withdrawals of $43.7 million and $31.7 million, respectively.

Yet, a handful of products stood out as exceptions. Short bitcoin investment products attracted $14.5 million in inflows, lifting year-to-date assets under management by 8.1%, as investors positioned defensively amid falling prices. Hype-linked products also recorded $15.5 million in inflows, which CoinShares said benefited from heightened onchain activity tied to tokenized precious metals.

The pullback has coincided with a sharp drawdown in general prices, with bitcoin down roughly 12% over the past week and ether falling about 22%.