USDCrypto ETPs Shed $1.47B as Risk-Off Trade Spreads
Bitcoin funds take the heaviest hit while select altcoin products attract inflows
TL;DR
- Crypto investment products recorded $1.47 billion in weekly outflows, extending a two-week withdrawal streak.
- Bitcoin products led the drawdown, while Ether funds also posted heavy redemptions.
- CoinShares linked the risk-off move to Iran-related tensions spreading across regions.
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Crypto investment products recorded $1.47 billion in outflows last week as risk-off sentiment tied to Iran-related tensions spread across global markets, with Bitcoin funds taking the largest hit and Ether products also seeing sizable withdrawals.
The latest withdrawals marked the second straight week of redemptions after the prior week’s $1.07 billion pullback, bringing two-week outflows to $2.54 billion. The latest move ranked as the third-largest crypto fund outflow of 2026.
CoinShares said total assets under management across tracked crypto investment products stood at $148.7 billion, meaning the weekly withdrawals represented about 1% of total AUM. Bitcoin products still accounted for the largest share of the market, with $120.2 billion in AUM, equal to about 80% of total crypto ETP assets.
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Iran tensions drive broader risk-off move
James Butterfill, CoinShares head of research, said growing risk-off sentiment tied to Iran-related tensions had spread across “virtually every region,” even as progress continued around the CLARITY Act.
The geopolitical backdrop intensified after the U.S. hit Iranian missile sites and boats near the Strait of Hormuz overnight. Iran’s Revolutionary Guard threatened retaliation and called the action a ceasefire violation.
Negotiations were reported to be close but still stuck on wording around Iran’s nuclear stockpile and the timing of the release of $24 billion in frozen assets. Israel separately escalated pressure by striking more than 100 Hezbollah targets in Lebanon overnight and pushing ground operations further north beyond its security zone.
U.S.-listed spot Bitcoin ETFs were the main driver of the wider outflow, with around $1.26 billion in cumulative weekly net withdrawals. The decline marked the largest weekly withdrawal since late January and extended a six-day outflow streak totaling $1.55 billion.
Monday delivered the sharpest single-day hit, as the 12 U.S.-based spot Bitcoin ETFs lost a combined $648.6 million after Bitcoin fell below $77,000. It was the largest single-day withdrawal since Jan. 29.
CoinShares described the selloff as a reversal of the prior week’s relative “European resilience,” with outflows spreading across global crypto ETP markets. The United States led the regional drawdown, while the Netherlands and Australia were the only listed markets with notable inflows.
Select altcoin products buck outflow trend
Despite the broad pullback, nine assets still recorded inflows above $1 million, down from 11 assets the previous week. XRP products led altcoin inflows, while Near, Solana, multi-asset products and Sui also drew capital.
Short Bitcoin products also drew inflows as long Bitcoin products saw heavy withdrawals, reflecting demand for bearish or hedging exposure during the selloff. Hyperliquid ETFs recorded inflows according to SoSoValue data cited separately from the CoinShares ETP flow breakdown.
FAQ
What drove the crypto ETP outflows?
Risk-off sentiment tied to Iran-related tensions spread across global crypto investment products.
Which asset saw the largest withdrawal?
Bitcoin products saw the largest withdrawal among listed crypto investment products.
Did any crypto products record inflows?
Yes. XRP, Near, Solana, multi-asset, Sui, short Bitcoin, Chainlink and Hyperliquid products recorded inflows.
Which region led the outflows?
The United States led regional outflows among listed markets.
This article has been refined and enhanced by ChatGPT.
