Crypto ETPs Bleed $3.8B as US Investors Flee

Key Insights

• Crypto ETPs marked fourth straight weekly outflows
• US weakness drove most redemptions
• XRP and Solana drew fresh inflows

CoinShares reported that crypto ETPs recorded $173 million in outflows last week, extending a four-week withdrawal streak across global markets. The update showed that cumulative redemptions reached $3.74 billion during that period, reflecting sustained investor caution. Assets under management fell to roughly $133 billion, their lowest level since April 2025, as price weakness weighed on flows.

The crypto ETP market came under pressure as sentiment across major digital assets deteriorated. Early in the week, funds attracted $575 million in inflows, but that momentum reversed after $853 million exited midweek. The move followed renewed price weakness in Bitcoin and Ethereum, which dragged broader allocation decisions lower. By Friday, weaker-than-expected U.S. Consumer Price Index data triggered a modest rebound, resulting in $105 million in new subscriptions. Still, total weekly flows remained negative, reinforcing the prevailing risk-off stance.

Bitcoin And Ethereum Led Redemptions

CoinShares data showed Bitcoin funds absorbed $133.3 million in redemptions, making them the primary driver of last week’s weakness. Short Bitcoin products also saw withdrawals totaling $15.4 million over the prior two weeks, a pattern often observed near market lows. This shift occurred because investors reduced leveraged exposure rather than building new bearish positions.

Ethereum products recorded $85.1 million in outflows during the same period, while Hyperliquid-linked vehicles lost $1 million. Trading volumes across digital asset ETPs declined to $27 billion, down from $63 billion the previous week, signaling reduced speculative engagement. The contraction in turnover suggested that institutional participants stepped back as volatility increased.

SoSoValue figures indicated that U.S. spot Bitcoin exchange-traded funds accounted for nearly $360 million in redemptions, reinforcing the regional divergence. U.S. spot Ether funds, however, registered $10 million in inflows despite broader Ethereum weakness. That divergence reflected selective positioning within regulated vehicles, rather than uniform risk aversion.

Regional Divergence Reshaped Crypto ETP Flows

CoinShares breakdowns showed that the United States experienced $403 million in outflows, while other regions attracted $230 million in combined inflows. Germany led international allocations with $115 million, followed by Canada with $46.3 million and Switzerland with $36.8 million. This contrast suggested that non-U.S. investors used price declines as entry points.

The regional gap widened as U.S. investors reacted to domestic macro uncertainty and persistent asset weakness. Meanwhile, European and Canadian buyers appeared more willing to reallocate capital into diversified crypto ETP exposure. That reaction mirrored previous cycles when overseas demand partially offset U.S.-driven selling.

Within asset classes, XRP and Solana stood out as exceptions. XRP funds attracted $33.4 million in inflows, while Solana products gathered $31 million, extending their recent resilience. Chainlink-linked vehicles added $1.1 million, indicating selective appetite for alternative protocols. These allocations suggested that investors favored perceived relative strength over broad market exposure.

Structural Pressures And Forward Signals

Standard Chartered analysts lowered their 2026 Bitcoin target from $150,000 to $100,000 last week, citing structural headwinds and slower capital rotation. The bank also projected a potential decline toward $50,000 before stabilization, reinforcing cautious positioning among institutional desks. That forecast added to the cautious tone that already dominated allocation decisions.

Market structure data indicated that ETP trading participation narrowed, reflecting consolidation rather than aggressive liquidation. As volatility moderated into the week’s close, flows stabilized but failed to reverse fully. The crypto ETP complex therefore entered the new week with sentiment still fragile.

Near-term focus shifts to whether cross-border inflows can offset U.S. redemptions if macro data stabilizes. The next inflection point hinges on whether institutional buyers rebuild exposure during continued price consolidation.