Digital Asset Investment Products Experience $1.7B Withdrawals, Largest Since November 2025
Digital asset ETP withdrawals reached $1.73 billion during the past week, representing the most substantial outflow event since November 2025, with Bitcoin and Ethereum leading the exodus, though certain alternative coins experienced minor capital inflows.
Digital currency investment vehicles experienced a dramatic shift during the past week, transitioning from substantial capital inflows to one of the most significant withdrawal periods ever recorded, as pessimistic market conditions continued to prevail.
Exchange-traded products focused on cryptocurrencies experienced withdrawals totaling $1.73 billion throughout the week, representing the most substantial outflow event since the middle of November 2025, according to a Monday report from CoinShares.
"Declining expectations surrounding interest rate reductions, adverse price trends and frustration that digital assets have yet to benefit from the currency debasement narrative have probably driven these withdrawals," explained James Butterfill, who serves as head of research at CoinShares.
The most recent withdrawal figures underscore the market's horizontal trading pattern, coming after the previous week's $2.2 billion in capital inflows.
Bitcoin and Ether lead outflows with $1.72 billion combined
Bitcoin (BTC) and Ether (ETH) dominated the withdrawal activity from digital currency funds throughout the past week, with exits totaling $1.09 billion and $630 million, in that order.
Although the withdrawals mirrored widespread pessimistic sentiment throughout the marketplace, certain alternative cryptocurrencies defied the prevailing pattern. XRP and Sui experienced withdrawals of $18.2 million and $6 million, whereas Solana registered capital inflows amounting to $17.1 million.
Investment products focused on Chainlink similarly experienced modest capital inflows totaling $3.8 million, based on data provided by CoinShares.
Exchange-traded products betting against Bitcoin registered minimal inflows of approximately $500,000, which appears inconsistent with the prevailing negative market outlook. "Nevertheless, this suggests that investor sentiment has yet to recover following the Oct. 10, 2025 price decline," observed Butterfill from CoinShares.
BlackRock's iShares, Fidelity top the losses
Withdrawals were distributed among multiple fund providers throughout the past week, with BlackRock's iShares exchange-traded funds (ETFs) experiencing the largest exodus at $951 million.
Fidelity Investments and Grayscale Investments came next with withdrawals totaling $469 million and $270 million, in that sequence. Certain fund providers, nonetheless, succeeded in achieving positive results, with Volatility Shares and ProFunds Group registering capital inflows of $83 million and $37 million.
From a geographical perspective, withdrawals were predominantly centered in the United States, amounting to $1.8 billion.
The aggregate assets under management within cryptocurrency investment products declined to $178 billion, dropping from $193 billion recorded at the conclusion of the preceding week.