Crypto Investment Products Face Record $2.9 Billion in Weekly Outflows

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Global crypto investment funds managed by BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced record net outflows of $2.9 billion last week, according to CoinShares data.

James Butterfill, Head of Research at CoinShares, identified multiple contributing factors, including the recent Bybit hack, a more aggressive stance from the Federal Reserve, and an extended 19-week inflow streak totaling $29 billion. “This combination likely led to a mix of profit-taking and deteriorating sentiment toward digital assets,” Butterfill stated in a Monday report.

Despite the downturn, U.S. spot Bitcoin ETFs reversed an eight-day streak of outflows on Friday, signaling potential recovery. Additionally, President Trump’s Crypto Strategic Reserve announcement on Sunday, which triggered a market rebound, is yet to be reflected in fund flow data.

Following two consecutive weeks of heavy withdrawals, Bitcoin ETFs attracted $94 million in net inflows on Friday, indicating a shift in investor sentiment.

“Even before Trump’s announcement, institutional players began re-entering the market, recognizing that Bitcoin was undervalued,” said BRN analyst Valentin Fournier in a statement to PRIME. “With renewed buying interest and positive momentum, Bitcoin could soon reach new highs—especially as the Presidential Working Group moves forward with the crypto reserve initiative.”

The bulk of the outflows originated from U.S.-based funds, which saw $2.87 billion exit the market, followed by Switzerland ($73 million) and Canada ($16.9 million). Germany remained an outlier, with investors adding $55.3 million to crypto funds in the region.

Bitcoin and Ethereum Funds Lead Outflows, While Sui and XRP Defy the Trend

Bitcoin-focused investment products led the decline, registering $2.59 billion in weekly outflows, while short-Bitcoin funds attracted $2.3 million in inflows. Last week, Bitcoin plunged 18.7% from $96,294 to $78,289 before rebounding following Trump’s crypto reserve announcement.

Meanwhile, Ethereum funds faced their largest-ever weekly outflows, totaling $300 million, while investment products tied to TON ($22.6 million) and Solana ($7.4 million) also saw notable declines.

On the flip side, Sui investment products outperformed the market, attracting $15.5 million in net inflows, while XRP-based funds extended their winning streak, adding $5 million last week.