Crypto Funds Post Weekly Outflows as Macro Sentiment Turns

Crypto funds saw $454 million in outflows last week as fading hopes for a March Fed rate cut cooled investor risk appetite. Bitcoin absorbed most of the selling, while select altcoins and European funds continued to attract inflows. The data points to caution rather than capitulation, with markets increasingly sensitive to macro policy signals.

According to data released Monday by CoinShares, crypto exchange-traded products recorded $454 million in net outflows, erasing a portion of the strong inflows seen at the start of 2026. The pullback followed four consecutive days of withdrawals after the market opened the year with roughly $1.5 billion in inflows over its first two trading sessions.

James Butterfill, CoinShares’ head of research, said the shift in sentiment was largely driven by macroeconomic signals. Recent data reduced confidence that the Federal Reserve will cut interest rates as early as March, prompting investors to scale back exposure to risk assets, including crypto.

Earlier coverage: Powell probe puts central bank independence in focus, adds new risk premium narrative for Bitcoin

Despite the setback, overall flows for the month remain in positive territory. Month-to-date inflows stood at $229 million, supported by the $582 million added during the prior week.

Bitcoin bears the brunt as rate expectations shift

Bitcoin was the main contributor to last week’s outflows, with $405 million exiting BTC-linked investment products. Butterfill noted that short-Bitcoin products also recorded modest withdrawals of $9 million, suggesting market positioning remains divided rather than decisively bearish.

While Bitcoin struggled, several altcoins attracted fresh capital. Funds tracking XRP, Solana and Sui continued to see steady inflows, totaling approximately $46 million, $33 million and $8 million, respectively. The contrast highlights selective risk appetite among investors rather than a blanket exit from the asset class.

Ether-focused funds faced their own pressure, registering $116 million in outflows. Multi-asset crypto products also declined, with a combined $21 million leaving those vehicles during the week.

US dominates withdrawals as Europe shows resilience

Regionally, the United States accounted for nearly all of the selling pressure. US-listed crypto funds saw $569 million in outflows, making it the only major market with net losses during the period.

Elsewhere, investor demand remained more resilient. Germany, Canada and Switzerland recorded inflows of $59 million, $25 million and $21 million, respectively, underscoring diverging regional sentiment as global investors reassess monetary policy risks.

Weekly crypto ETP flows by country as of Friday (in millions of US dollars). Source: CoinShares

Total assets under management across crypto ETPs edged higher to $181.9 billion by the end of the week, up slightly from $181.3 billion previously.

Among issuers, inflows were led by BlackRock’s iShares products and ProFunds Group, which attracted $181 million and $180 million, respectively. On the outflow side, Fidelity Investments and Grayscale Investments saw the largest redemptions, with $454 million and $360 million leaving their products.