Crypto Fund Outflows Persist Over Three-Week Stretch: Data Shows Longest Exit Cycle Since Bitcoin ETF Launch

The crypto investment ecosystem continues to face significant headwinds, with redemptions extending well beyond typical market cycles. According to recent data from CoinShares, crypto-linked investment products have experienced sustained capital outflows totaling $4 billion over a five-week period—a withdrawal streak unmatched since the launch of U.S. spot Bitcoin ETFs in January 2024. This pattern reflects deepening caution among institutional investors navigating macro uncertainty and strained liquidity conditions.

U.S. Spot Bitcoin ETFs Signal Early Recovery After Weeks of Decline

Despite the broader downturn, there are tentative signs of stabilization in the U.S. spot Bitcoin ETF market. On Friday, trading volume rebounded to $3.7 billion, a notable jump from $2.4 billion the previous day, with inflows reaching $88 million. However, the broader weekly picture remains challenging—the week closed with $315.9 million in net redemptions. Over the five-week withdrawal period, U.S. spot Bitcoin ETFs have faced cumulative outflows of $3.8 billion, bringing year-to-date net redemptions to $4.5 billion. This recovery glimmer, though modest, suggests that market participants are watching for catalysts that could reverse the prolonged outflow trend.

Bitcoin Investment Products Lead $4 Billion in Cumulative Redemptions

Bitcoin-linked funds continue to bear the brunt of investor repositioning. Last week alone, $215 million flowed out of Bitcoin investment products, cementing their status as the most heavily redeemed asset class this year with approximately $1.3 billion in year-to-date outflows. Interestingly, short-Bitcoin ETPs showed unexpected strength, attracting $5.5 million in inflows—the largest weekly inflow among all crypto assets—signaling that some institutional players are maintaining hedges against further downside.

Ether Continues to Bleed While Altcoins Show Selective Strength

Ether investment products mirrored the broader selloff, experiencing $36.5 million in outflows and bringing cumulative year-to-date losses to approximately $500 million. In contrast, XRP and Solana investment products demonstrated more resilience, recording inflows of $3.5 million and $3.3 million respectively. This divergence underscores a fragmentation in market sentiment—while large-cap crypto assets face sustained redemption pressure, selective positions in alternative assets continue to attract capital from investors betting on differentiated performance.

CoinShares Slashes Bitcoin ETP Fees to Combat Investor Outflows

Recognizing the challenging fundraising environment, CoinShares announced a structural fee reduction for its flagship Bitcoin ETP (BITC), lowering the management fee to 0.15% effective immediately. Originally introduced in January 2021 with a base fee of 0.98%, BITC ranks among Europe’s largest Bitcoin ETPs. CoinShares CEO Jean-Marie Mognetti commented: “This fee reduction reflects our conviction that accessible pricing must be structural, not promotional,” signaling the company’s commitment to attracting flows through genuine value improvement rather than temporary incentives.

Market Caution Persists Despite Scattered Signs of Stabilization

Overall, the extended outflow pattern reveals persistent institutional risk aversion. Trading volumes across crypto ETPs dropped to $17 billion last week—the lowest level since July 2025—highlighting subdued participation from typically active market participants. While selective inflows into short products and certain altcoins demonstrate tactical maneuvering, the broad picture remains one of constrained risk appetite. Market observers anticipate that upcoming inflation readings and macroeconomic data releases will be critical in determining whether these tentative stabilization signals can translate into a sustained reversal of outflow pressures in crypto investment products.