Crypto Investments Take a Hit: BTC and ETH Lead the Way
Last week, crypto exchange-traded products (ETPs) witnessed a substantial downturn, with outflows reaching $1.73 billion. This marks one of the largest outflows since mid-November 2025, according to CoinShares. The shift from the previous week's inflows of $2.2 billion underscores the market's volatile nature.
Major Cryptocurrencies Affected
- Bitcoin (BTC): Outflows of $1.09 billion
- Ether (ETH): Outflows of $630 million
However, not all cryptocurrencies followed this trend:
- Solana (SOL): Inflows of $17.1 million
- Chainlink (LINK): Minor inflows of $3.8 million
This mixed performance suggests that investor sentiment is not uniform across the crypto market.
Driving Factors
The outflows were primarily driven by:
- Dwindling expectations for interest rate cuts
- Negative price momentum
- Disappointment that digital assets have not benefited from the debasement trade
Despite the overall negative sentiment, Short-Bitcoin ETPs saw inflows of $500,000, indicating that some investors are betting against the market.
Issuer Performance
- BlackRock's iShares ETFs: Led the outflows with $951 million
- Fidelity Investments: Outflows of $469 million
- Grayscale Investments: Outflows of $270 million
However, some issuers managed to post gains:
- Volatility Shares: Inflows of $83 million
- ProFunds Group: Inflows of $37 million
Regional Impact
- United States: Largest outflows, totaling $1.8 billion
- Total Assets Under Management: Fell to $178 billion, down from $193 billion at the end of the previous week
This decline reflects the broader market sentiment and the challenges faced by crypto investments.
