Crypto funds log sharpest weekly exits since February amid macro jitters: CoinShares
Crypto investment products issued by managers like BlackRock, Grayscale, and Fidelity have posted their largest weekly outflows since February, with $2 billion exiting global ETPs amid monetary policy uncertainty and selling pressure from large crypto-native holders, according to CoinShares.The withdrawals mark the third consecutive week of redemptions — bringing the three-week total to $3.2 billion — and follow a broad pullback in digital asset prices that has reduced total assets under management from an early-October peak of $264 billion to $191 billion.CoinShares’ head of research, James Butterfill, wrote that the combination of shifting rate expectations and whale-driven supply “continues to weigh on sentiment,” extending a negative streak that began earlier this month.Weekly crypto asset flows. Image: CoinShares.U.S. dominates outflows, Germany bucks the trendRegionally, the exodus was led overwhelmingly by the United States, which accounted for 97% of all outflows, totaling $1.97 billion. Switzerland and Hong Kong followed with $39.9 million and $12.3 million in outflows, respectively.In contrast, German investors moved the other way, adding $13.2 million to digital asset ETPs as price weakness deepened. Butterfill noted that Germany has often shown more opportunistic inflow patterns during drawdowns, a trend that reappeared this week.Although the U.S. government shutdown has now ended, crypto markets remain under pressure. According to The Block, bitcoin tumbled to a six-month low near $95,000, a level not seen since early May. The drop comes despite hopes of fresh liquidity flowing back into markets, suggesting that broader macro and crypto-native liquidity headwinds remain a drag on sentiment.Bitcoin and Ethereum lead redemptionsBitcoin ETPs saw $1.38 billion in outflows, marking a three-week withdrawal streak now equivalent to roughly 2% of total BTC ETP assets under management.Ethereum posted $689 million in outflows, proportionally larger at around 4% of AuM. Solana and XRP also saw modest redemptions, with $8.3 million and $15.5 million exiting their respective products.The repositioning wasn’t entirely one-sided, Butterfill noted. Investors allocated $69 million into multi-asset ETPs over the past three weeks, reflecting a preference for diversified exposure during volatility.Short-bitcoin products also recorded net inflows as traders increased hedges against further downside.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.