Crypto investment products recorded $1.7 billion in net outflows last week, according to a report released on Monday by digital asset manager CoinShares. The withdrawals marked the second consecutive week of redemptions as Bitcoin’s price decline weighed on investor sentiment.
The previous week saw $1.73 billion in outflows, bringing the two-week total to $3.43 billion and pushing year-to-date flows into negative territory at –$1 billion. CoinShares said the trend reflects growing caution among institutional investors.
Macroeconomic Pressures Drive Investor Caution
James Butterfill, head of research for CoinShares, stated that these redemptions are a result of multiple macroeconomic factors rather than a single event. He mentioned that a combination of macroeconomic factors, including the U.S. Federal Reserve’s tight monetary policies, along with the downward trend in the prices of Bitcoin, continues to reduce investor confidence.
He also cited whale selling linked to the four-year crypto cycle and rising geopolitical instability as additional pressures on markets. Due to the current state of stricter money policy and a volatile environment, many investors are taking a much more cautious approach to investing in the digital space.
Source: CoinShares
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Withdrawals Are Led By Bitcoin And Ether
According to CoinShares, the largest category of products affected by the $1.7 billion in withdrawals was Bitcoin products, with $1.32 billion withdrawn. Second were Ethereum products, which had a total of $308 million withdrawn from them. Already this year, the losses associated with Ethereum products have exceeded $383 million.
In the same period, Solana-based products suffered losses of $31.7 million in withdrawals and XRP-based products experienced $43.7 million in withdrawals. Short-bitcoin ETFs received just $14.5 million in inflows, showing that there is little desire for downside protection hedges.
BlackRock ETFs Were Hit Hardest
Of all the issuers, it was the BlackRock-issued iShares crypto ETFs that suffered the most redemptions, losing $1.2 billion. Other issuers did not fare much better.
However, despite the large outflows experienced by nearly all issuers, two issuers (ProFunds Group and Volatility Shares) experienced inflows of a combined $200 million.
This indicates that there are still a number of institutional investors willing to invest in cryptocurrency products even in times of weakness. CoinShares also reported that the total amount of cryptocurrency managed had declined to $165.8 billion, down $73 billion since October 2025.
Market Mood Shifts To Extreme Fear
Bitcoin, which had been trading at over $77,800, fell 0.7% in the past day, according to CoinMarketCapdata. The Crypto Fear & Greed Index also declined to a score of 14, an “Extreme Fear” level.
Source: CoinMarketCap
There is also a CME futures gap between $77,800 and $84,200 that analysts at Bitcoinsensus believe could potentially be used as a reference point for future price movements during uncertain periods. The gap may or may not be filled immediately. However, it is a notable area where sentiment can shift in the days ahead.
Also Read | Ethereum (ETH) Faces Brutal Plunge but Eyes 10% Rebound
