Crypto investment products saw their heaviest weekly outflows since February, with $2 billion exiting global exchange-traded products amid falling risk appetite.
CoinShares reported on Monday that crypto ETPs experienced a 71% surge in outflows compared with the prior week, marking the third consecutive week of withdrawals and bringing the three-week total to $3.2 billion.
Monetary Uncertainty and Whale Selling Pressure the Market
James Butterfill, head of research at CoinShares, attributed the outflows to shifting expectations around monetary policy and selling activity from large crypto-native investors.
These factors pushed total assets under management in crypto ETPs down to $191 billion, a notable decline from the October peak of $264 billion.
United States Leads the Outflow Trend
The U.S. accounted for the overwhelming majority of withdrawals, totaling $1.97 billion.
Germany, however, was one of the few markets to see inflows, accumulating $13.2 million, diverging from the broader global pattern.
Outflows Spread Across Multiple Regions
Several other jurisdictions also recorded significant capital flight.
Switzerland saw $39.9 million in outflows, while Sweden lost $21.3 million.
Hong Kong, Australia and Canada posted combined redemptions of $23.9 million.
Bitcoin and Ether ETPs Hit the Hardest
Bitcoin investment products faced nearly $1.4 billion in outflows last week, representing around 2% of total Bitcoin ETP assets.
Ether funds experienced close to $700 million in redemptions, equating to roughly 4% of their total assets.
Smaller Altcoin ETPs Not Spared
Solana ETPs lost $8.3 million, and XRP products saw $15.5 million in outflows, highlighting broad-based weakening across single-asset offerings.
Investors Shift to Diversified and Short-Bias Products
While single-asset funds experienced selling pressure, multi-asset ETPs attracted $69 million in new inflows over the past three weeks.
The trend suggests investors are seeking broader market exposure and lower volatility as macro uncertainty rises.
Short-bitcoin products also gained traction, posting $18.1 million in inflows over the same period, reflecting a modest increase in hedging behavior.
