Global Crypto Funds Records $1.73B In Outflows

Global crypto exchange-traded products (ETPs) saw a sudden setback last week, with investors withdrawing a staggering $1.73 billion. According to CoinShares data, this is the largest weekly decline since mid-November 2025. This major capital outflow also underscores investors’ caution amid macroeconomic pressures and deteriorating market sentiment affecting digital assets.

Bitcoin ETPs Lead the Sell-Off

CoinShares’ Head of Research, James Butterfill, explained that the selloff is driven by declining expectations for interest rate cuts, negative price momentum, and disappointment that cryptocurrencies are yet to benefit from debasement trade.

Notably, Bitcoin investment products experienced the most significant decline. It led all asset classes with weekly outflows totaling $1.09 billion. This withdrawal indicates that institutional investors are reducing their risk exposure amid prevailing uncertainties and global economic growth. 

Meanwhile, Ethereum-based exchange-traded products (ETPs) also experienced substantial losses, with weekly outflows of $630 million. Furthermore, XRP investment products recorded outflows of $18.2 million. While most cryptocurrencies experienced major outflows, Solana remained strong. Last week, Solana investment products brought in $17.1 million.

Interest Rate Expectations Drive Caution on Crypto Products

Crypto investment products began 2026 on a strong note, but that momentum weakened quickly. After attracting about $1.5 billion in inflows during the first two trading days of the year, the market reversed course.

Four consecutive days of withdrawals erased a significant portion of those gains. According to reports, crypto ETPs saw $454 million leave the market. Bitcoin led the losses with Bitcoin ETPs seeing $405 million in outflows. Shirt-Bitcoin products also had small outflows of $9 million. At the same time, Ethereum products lost $116 million.

Crypto ETPs to Boom in 2026 After SEC Listing Standard

Meanwhile, a forecast revealed that over 100 new crypto ETPs could enter the US market in 2026. This followed a recent change by the Securities and Exchange Commission (SEC) that sharply reduced approval timelines. Bitwise researcher Ryan Rasmussen said the market is approaching a rapid expansion phase. 

Rasmussen said the pace of new product launches is set to increase quickly. He expects spot crypto products, index-based funds, equity-linked strategies, and other models to reach the market as soon as possible.

Many market watchers see this as a turning point. Additional crypto ETPs, especially those tied to assets beyond Bitcoin and Ether, are widely viewed as supportive for broader market activity. Recall that Grayscale has also said 2026 could mark a major phase for the cryptocurrency markets.