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Crypto investment products have extended their losing streak, as investors withdrew significant capital for a second consecutive week amid mounting macroeconomicCrypto investment products have extended their losing streak, as investors withdrew significant capital for a second consecutive week amid mounting macroeconomic

Investors Pull $1.7B From Crypto Funds as YTD Flows Turn Negative

Author: The Crypto Basic

Source: The Crypto Basic

2026/02/03 00:11

3 min read

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Crypto investment products have extended their losing streak, as investors withdrew significant capital for a second consecutive week amid mounting macroeconomic and market pressures.

According to asset manager CoinShares, global digital asset investment products recorded roughly $1.7 billion in outflows over the past week. Consequently, year-to-date flows have slipped into negative territory, with net outflows now totaling about $1 billion.

Key Points

Global digital asset investment products saw approximately $1.7 billion in outflows over the past week.
Year-to-date fund flows have turned negative, totaling roughly $1 billion in net outflows.
Assets under management have fallen by about $73 billion since peaking in October 2025.
U.S.-listed crypto products recorded around $1.65 billion in outflows in a single week.
Bitcoin investment products lost approximately $1.32 billion, the largest weekly outflow among digital assets.

Macro Pressures Weigh on Crypto Funds

The latest wave of selling comes as markets adjust to a more restrictive outlook from the U.S. Federal Reserve. CoinShares also cited distribution by large holders as well as rising geopolitical risks as key drivers of the pullback.

Together, these factors have triggered a sharp contraction in assets under management. Specifically, since peaking in October 2025, total holdings across crypto investment products have declined by approximately $73 billion.

The United States led the withdrawals, with about $1.65 billion exiting U.S.-listed products in a single week. Canada and Sweden also saw notable outflows, totaling roughly $37.3 million and $18.9 million, respectively.

In contrast, parts of Europe showed relative resilience. Switzerland attracted inflows of about $11 million, while Germany recorded approximately $4.3 million in new investments, highlighting uneven regional sentiment.

Bitcoin and Ethereum Lead Broad-Based Withdrawals

Selling pressure was widespread across major digital assets. Bitcoin products bore the brunt of the redemptions, shedding around $1.32 billion during the week. Ethereum followed with outflows of approximately $308 million.

Other tokens that had drawn attention earlier in the cycle were not immune. XRP-linked products saw withdrawals of roughly $43.7 million, while Solana products lost close to $31.7 million over the same period.

Still, a handful of segments moved against the broader trend. Short Bitcoin products attracted about $14.5 million in inflows.

CoinShares noted that assets in these products are now up more than 8% year-to-date. Meanwhile, hype-focused investment products gained approximately $15.5 million, reflecting increased on-chain activity linked to tokenized precious metals.

US Spot Bitcoin ETFs Under Pressure

The broader market weakness has also weighed heavily on U.S. spot Bitcoin exchange-traded funds. Bitcoin is now trading below the average acquisition cost of these ETFs, after experiencing their second- and third-largest weekly outflows ever recorded last month, according to Alex Thorn, head of research at Galaxy.

U.S. spot Bitcoin ETFs currently manage about $113 billion in assets and collectively hold roughly 1.28 million Bitcoin. Based on those holdings, the estimated average purchase price is around $87,830 per coin. With market prices below that level, the average ETF position is now underwater, Thorn said.

Outflows from these products have accelerated in recent weeks. Data from CoinGlass show that U.S. spot Bitcoin exchange-traded funds have seen net outflows of roughly $2.8 billion over the past two weeks. Of this total, about $1.49 billion exited in the most recent week, with $1.32 billion leaving the week prior.

Despite the drawdown, some signs of institutional resilience remain. Since October, the total value held in spot Bitcoin ETFs has dropped by roughly 31.5% from a high near $165 billion, while Bitcoin’s market price has slipped about 40%.

Nevertheless, cumulative ETF inflows remain only about 12% below their peak, suggesting that long-term investors have largely maintained their positions, according to Galaxy Research.

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