Crypto exchange-traded products (ETPs) have now seen outflows for four straight weeks, with global funds losing over $170 million in the latest week due to weakness in US markets.
According to the most recent CoinShares data, crypto investment products extended their losing streak amid the negative sentiment that has persisted over the past month. In a Monday report, James Butterfill, head of research at CoinShares, noted that global crypto funds ended the week with net outflows of $173 million, bringing the total withdrawals over the last four weeks to $3.47 billion.
Crypto ETPs recorded outflows exceeding $1.7 billion in each of the last two weeks of January as market sentiment turned, marking the largest net withdrawals since November 2025. Over the past two weeks, investment products saw outflows of $187 million and $173 million, respectively. While these figures suggest the heavy selling pressure has eased, the trend has not yet reversed despite some improvement in sentiment.
“The week started more positively, with inflows of $575 million, followed by outflows of $853 million, likely driven by further price declines. Sentiment improved slightly on Friday after weaker-than-expected CPI data, leading to inflows of $105 million,” Butterfill explained.
Trading activity for ETPs also fell significantly, with weekly volumes dropping to $27 billion from a record $63 billion the previous week. Butterfill pointed out a sharp regional divide in sentiment between the US and the rest of the world. The US experienced $403 million in outflows last week, while all other regions combined saw inflows of $230 million. Germany, Canada, and Switzerland performed the strongest, with inflows of $114.8 million, $46.3 million, and $36.8 million, respectively.
Altcoins Show Selective Strength
The report highlighted that Bitcoin (BTC) and Ethereum (ETH) saw the weakest performance among major assets. Bitcoin recorded the poorest sentiment, with net outflows of $133 million, largely driven by $235 million in withdrawals from BlackRock’s IBIT. However, short Bitcoin products also saw outflows of $15.4 million over the past two weeks—a pattern Butterfill noted often appears near market lows.
Ethereum faced $85.1 million in outflows, led by $112.7 million from BlackRock’s ETHA, while Hyperliquid saw $1 million in withdrawals.
In contrast, some altcoin-based investment products continued to attract fresh inflows last week. Funds based on XRP led with $33.4 million in inflows, adding to the previous week’s $63.1 million. Solana ETPs followed with $31 million in inflows, a significant increase from the $8.2 million recorded the week before, signaling ongoing confidence in these assets despite the broader downturn.
Frequently Asked Questions
FAQs Crypto Fund Outflows Market Trends
BeginnerLevel Questions
1 What does crypto fund outflows mean
It means investors are pulling more money out of cryptocurrencyfocused investment funds than they are putting in The recent report shows a net withdrawal of 173 million over four weeks
2 Why is this news important
Sustained outflows can signal declining investor confidence in the short term Its a key metric analysts watch to gauge market sentiment and potential price pressure as funds may sell assets to return cash to investors
3 Does this mean the crypto market is crashing
Not necessarily While outflows indicate negative sentiment in one segment the broader crypto market is influenced by many factors This is a bearish signal but not the sole indicator of a crash
4 What are crypto funds
These are pooled investment vehicles that allow people to invest in a portfolio of cryptocurrencies or cryptorelated assets without buying and storing the coins themselves Examples include Grayscales GBTC or spot Bitcoin ETFs
5 Should I sell my crypto because of this news
This data point alone shouldnt dictate your strategy Investment decisions should be based on your personal financial goals risk tolerance and a longterm plan not just shortterm fund flows
Advanced Practical Questions
6 What are the likely reasons behind these consecutive outflows
Common drivers include riskoff sentiment in broader markets profittaking after a strong rally concerns over high interest rates or negative regulatorynews events
7 How do fund outflows actually affect Bitcoin or Ethereum prices
When funds experience redemptions they often need to sell some of their underlying holdings on the open market to raise cash This increased selling supply can create downward pressure on prices
8 Are outflows from all types of crypto funds or just specific ones
The report usually breaks this down Often outflows may be concentrated in specific funds while others see inflows Its important to check which products are driving the trend
9 Is there a historical pattern Do prolonged outflows always lead to a bear market
History shows that prolonged heavy outflows often coincide with or precede bearish periods However they are a