Rebecca Cruz Crypto funds witnessed $288 million in outflows last week as ETPs extended their losing streak to five weeks, led by major withdrawals from Bitcoin investment products.
Crypto funds outflows stretch to five weeks as investor sentiment weakens
Crypto funds have continued their decline with another week of massive outflows totaling $288 million, marking the fifth straight week of capital flight from the digital asset market. This extended downturn represents the longest exit streak for crypto funds since early 2025, signaling a sustained phase of investor caution toward crypto investment products.
According to the latest CoinShares report, cumulative outflows have now reached $4 billion during this ongoing run. While that figure remains below last year’s $6 billion total for the same period, the sustained withdrawals highlight a notable lack of enthusiasm among institutional investors. The slump in crypto fund activity also mirrors broader fatigue within the exchange traded product segment, where trading volumes have dropped to $17 billion, the lowest level since mid 2025.
The consistent outflows underscore a key shift in risk appetite as investors continue to move away from digital assets amid uncertain macroeconomic conditions.
Bitcoin leads crypto funds outflows as bearish bets increase
Bitcoin remains the primary driver behind the negative momentum. The flagship cryptocurrency saw $215 million in outflows last week alone, accounting for the majority of the sector’s total losses. In stark contrast, short Bitcoin funds experienced $5.5 million in inflows, showing that bearish sentiment is still dominating the market.
This reversal highlights how traders are hedging positions or speculating against the leading crypto asset amid persistent market stagnation. Year to date, Bitcoin exchange traded products have already accumulated around $1.3 billion in net outflows, making them the weakest performing digital asset products so far this year.
Ether funds have also followed the downward pattern, with $36.5 million in outflows recorded last week. That brings the total for the year to nearly half a billion dollars. Meanwhile, smaller assets such as XRP and Solana provided rare bright spots with minor inflows of $3.5 million and $3.3 million respectively. Although the inflows are limited, they suggest selective investor interest in alternative assets that could offer short term opportunities.
CoinShares cuts Bitcoin ETP fees amid investor retreat
In response to the sluggish investment environment, CoinShares has introduced a permanent reduction in management fees for its flagship Bitcoin ETP. The company has lowered the fee to 0.15 percent, down from its previous level, making it one of the most competitive offerings in Europe.
Jean Marie Mognetti, the CEO and co founder of CoinShares, stated that the pricing adjustment represents a long term commitment to making digital asset exposure more accessible to investors. The move is aimed at revitalizing interest in the product at a time when investor appetite for crypto funds has waned.
The CoinShares Bitcoin ETP, launched in early 2021, has been one of the leading European vehicles for institutional crypto exposure. However, as outflows mount and trading activity remains muted, the fee reduction is seen as a strategic effort to rebuild confidence and attract new inflows into the product.
Spot Bitcoin ETFs show mild recovery in trading activity
While Europe faced widespread outflows, the United States spot Bitcoin ETF market offered a small glimmer of optimism toward the end of last week. After a series of declining sessions in February, trading volumes saw a modest recovery on Friday, climbing from $2.4 billion to $3.7 billion in daily activity.
Data from SoSoValue indicated that spot Bitcoin ETFs collectively brought in $88 million in inflows that day, although the weekly figures still ended negative at $315.9 million in total outflows. Year to date, spot Bitcoin ETFs have now recorded $4.5 billion in cumulative withdrawals, reflecting the ongoing struggle to maintain momentum after their strong debut earlier in the year.
Despite the renewed interest during Friday’s trading session, analysts suggest that institutional sentiment remains cautious. The mild inflows are viewed as temporary corrections rather than signs of a broader reversal. For a sustained recovery, consistent volume growth and renewed investor confidence will be crucial across major markets.
Market outlook: cautious optimism amid structural shifts
The crypto funds sector appears to be undergoing a period of recalibration as investors digest broader macroeconomic signals and changing liquidity conditions. The continued outflows suggest that many institutions are taking a wait and see approach until greater market clarity emerges.
At the same time, structural adjustments such as CoinShares’ fee reductions and the gradual stabilization in ETF volumes could help lay the groundwork for renewed participation later in the year. If macro conditions stabilize and regulatory frameworks become clearer, crypto funds could see a return of capital flows in the medium term.
Until then, the five week outflow streak stands as a reminder of how quickly sentiment can shift in the digital asset investment landscape. As of now, the market’s trajectory remains delicately balanced between cautious consolidation and the potential for a renewed bull phase driven by long term structural demand.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
