- Crypto investment funds registered net outflows of around $288 million last week, continuing five weeks of withdrawals that have cumulatively reached nearly $4 billion.
- While institutional demand for spot Bitcoin and Ether ETFs eased, there were small inflows into alternative crypto products.
Crypto investment funds continued to see withdrawals, extending five weeks of net outflows that have reached nearly $4 billion. According to the latest data from CoinShares, funds registered net outflows of $288 million last week alone. Market data indicate that institutional investors withdrew from crypto products, specifically spot Bitcoin exchange-traded funds (ETFs). U.S.-listed spot Bitcoin ETFs have registered five consecutive weeks of net outflows, the longest period since early 2025.
Continued Outflows in Bitcoin and Ether Funds
The outflow pattern started in late January and has been ongoing through February, with some weeks seeing withdrawals of over $1.4 billion. In total, spot Bitcoin ETFs have experienced a total outflow of around $3.8 billion in the five weeks. Analysts have noted that the continued outflows are happening in tandem with a slowdown in institutional interest in Bitcoin exposure through listed products. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC have been some of the largest contributors to the net outflows.
The Spot Ether ETFs have also seen five weeks of consecutive outflows. It appears that the rotation of funds is having a certain impact on the overall market for ETFs. It has been noted that Solana and XRP ETFs have seen small inflows of funds over the past period, suggesting a selective interest in other crypto indices. Despite the outflows, the total net inflows since the launch of U.S. spot Bitcoin ETFs have been above $50 billion, indicating that long-term allocation has not fully reversed.
Institutional Sentiment and Market Context
There has been an increase in institutional wariness due to macroeconomic uncertainty, geopolitical events, and the overall risk-off environment in financial markets. These factors have caused some allocators to reduce their exposure to more volatile crypto assets. Market analysts have pointed out that the current five weeks of consecutive outflows are one of the longest periods of negative flows since early 2025, when a similar trend occurred before a market-wide sell-off.
The price of Bitcoin has been ranging around important technical levels during this period, while the overall cryptocurrency market has been under pressure. The lower net inflows into ETFs have been accompanied by a lack of directional activity in some of the prominent digital currencies, thus supporting the conservative approach adopted by institutional participants.
Other factors that have been affecting the flows include the release of macroeconomic data and risk management approaches adopted by institutional desks responsible for managing digital asset allocations. The equity market volatility and the hardening of monetary expectations have also been affecting overall allocation patterns away from the risk assets of the crypto market. Despite the current redemptions, the total assets managed by the crypto ETFs are quite large.
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