Crypto investment products issued by managers like BlackRock, Grayscale, and Fidelity have posted their largest weekly outflows since February, with $2 billion exiting global ETPs amid monetary policy uncertainty and selling pressure from large crypto-native holders, according to CoinShares.
The withdrawals mark the third consecutive week of redemptions — bringing the three-week total to $3.2 billion — and follow a broad pullback in digital asset prices that has reduced total assets under management from an early-October peak of $264 billion to $191 billion.
CoinShares’ head of research, James Butterfill, wrote that the combination of shifting rate expectations and whale-driven supply “continues to weigh on sentiment,” extending a negative streak that began earlier this month.
Weekly crypto asset flows. Image: CoinShares.
U.S. dominates outflows, Germany bucks the trend
Regionally, the exodus was led overwhelmingly by the United States, which accounted for 97% of all outflows, totaling $1.97 billion. Switzerland and Hong Kong followed with $39.9 million and $12.3 million in outflows, respectively.
In contrast, German investors moved the other way, adding $13.2 million to digital asset ETPs as price weakness deepened. Butterfill noted that Germany has often shown more opportunistic inflow patterns during drawdowns, a trend that reappeared this week.
Although the U.S. government shutdown has now ended, crypto markets remain under pressure. According to The Block, bitcoin tumbled to a six-month low near $95,000, a level not seen since early May. The drop comes despite hopes of fresh liquidity flowing back into markets, suggesting that broader macro and crypto-native liquidity headwinds remain a drag on sentiment.
Bitcoin and Ethereum lead redemptions
Bitcoin ETPs saw $1.38 billion in outflows, marking a three-week withdrawal streak now equivalent to roughly 2% of total BTC ETP assets under management.
Ethereum posted $689 million in outflows, proportionally larger at around 4% of AuM. Solana and XRP also saw modest redemptions, with $8.3 million and $15.5 million exiting their respective products.
The repositioning wasn’t entirely one-sided, Butterfill noted. Investors allocated $69 million into multi-asset ETPs over the past three weeks, reflecting a preference for diversified exposure during volatility.
Short-bitcoin products also recorded net inflows as traders increased hedges against further downside.
