Crypto funds see $1.7B outflows, biggest since November 2025

Digital asset investment products experienced massive capital flight over the past reporting period, totaling an unprecedented $1.7 billion in outflows. This significant redemption volume marks the largest weekly withdrawal recorded since November 2025, signaling extreme caution and institutional de-risking across the cryptocurrency sector.

The primary driver for this substantial movement is believed to be a combination of aggressive macroeconomic tightening and persistent regulatory uncertainties globally. Investors, particularly those utilizing exchange-traded products (ETPs) and trusts, are prioritizing liquidity and reducing exposure to volatile assets amid rising global interest rates.

Bitcoin (BTC) products bore the overwhelming majority of the outflows, registering approximately $1.55 billion in redemptions. Ethereum (ETH) funds also saw notable selling pressure, contributing nearly $120 million to the total outflow figure. Interestingly, Short-Bitcoin funds—products designed to profit from BTC price declines—recorded marginal outflows of $10 million, suggesting that the movement was a broad withdrawal from the asset class rather than a simple shift toward bearish positioning.

Analysts view this event as a critical moment of capitulation, where institutional holders liquidated positions en masse. While the short-term impact is a significant depressive force on crypto prices, long-term industry watchers suggest such large-scale flushing of weak hands is often a prerequisite for a sustainable market bottom.

Source: Crypto funds see $1.7B outflows, biggest since November 2025