Bitcoin and Ethereum ETFs Bleed $1.73 Billion in Largest Outflow Since November
Crypto investment products, including Bitcoin and Ethereum ETFs, experienced significant outflows totaling $1.73 billion last week, the largest weekly withdrawal since November 2025. This reflects a general "risk-off" market sentiment driven by macroeconomic factors like reduced expectations for interest rate cuts and negative price momentum.
Financial Overview
Total Outflows: A combined $1.73 billion exited digital asset investment products last week.
Bitcoin Outflows: Bitcoin investment products accounted for $1.09 billion of the decline. As of today, Bitcoin is trading around $87,567.00.
Ethereum Outflows: Ethereum funds saw approximately $630 million in outflows, the second-largest weekly outflow on record. Ethereum is currently priced at about $2,901.40.
Contrasting Inflows: Products linked to Solana and Chainlink were among the few that recorded inflows, with $17.1 million and nearly $4 million respectively, suggesting some diversification within the crypto space.
Key Insights
The major drivers behind the pullback in crypto funds include:
Macroeconomic Pressures: Weaker expectations for Federal Reserve interest rate cuts have made safer assets more attractive, reducing the appetite for speculative investments like crypto.
Disappointment with "Debasement Hedge" Narrative: Despite rising government debt, cryptocurrencies have not consistently acted as a reliable hedge against currency debasement, leading some investors to cut their exposure.
Fragile Investor Sentiment: The market sentiment has remained cautious since previous market shocks in late 2025, with a general "risk-off" tone dominating US-based investors.
