Crypto investment products saw a sharp reversal last week as investors pulled $1.07 billion from digital asset ETPs, according to the latest CoinShares fund flows report.
The outflows ended a six-week run of positive inflows and marked the third-largest weekly outflow of 2026. The move showed that investors became more cautious as geopolitical risk, ETF redemptions, and broader market weakness weighed on sentiment.
CoinShares Head of Research James Butterfill said the pullback likely reflected renewed risk-off behavior linked to Iran-related developments. However, the selling was not spread evenly across the entire crypto market. Several altcoins still attracted fresh capital, suggesting investors remain selective rather than fully exiting the sector.
Bitcoin and Ethereum Lead the Outflows
Bitcoin products suffered the largest withdrawals, with $982 million leaving funds during the week. The outflow came as Bitcoin dropped below $77,000 during a wider crypto market selloff.
Despite the latest weakness, Bitcoin investment products still hold $3.9 billion in year-to-date inflows. This shows that the broader 2026 trend remains positive, even though short-term sentiment has weakened.
Ethereum products also faced heavy pressure. ETH funds recorded $249 million in outflows, marking their largest weekly withdrawal since January 30. The move showed that investors reduced exposure to both major crypto assets at the same time.
Blockchain equity ETFs were also hit, with $133 million leaving the category. This suggests the pullback affected not only token-based products but also crypto-linked stocks.
U.S. Investors Drove Most of the Selling
The United States accounted for most of the weekly decline, with $1.14 billion in outflows.
Other regions moved in the opposite direction. Switzerland recorded $22.8 million in inflows, Germany added $22 million, Canada brought in $12.6 million, and the Netherlands saw $7.5 million in inflows.
Total assets under management across digital asset investment products fell from $159 billion to $157 billion over the week.
XRP and Solana Buck the Trend
While Bitcoin and Ethereum saw heavy withdrawals, some altcoins attracted strong demand.
XRP recorded $67.6 million in inflows, while Solana added $55.1 million. CoinShares noted that inflows into both assets accelerated compared with recent weeks.
Other altcoins also saw positive flows. Toncoin attracted $7.7 million, Sui added $4.7 million, Ondo brought in $4.1 million, Chainlink saw $3.9 million, and Dogecoin gained $3.2 million.
This shows that investors are not abandoning crypto entirely. Instead, they appear to be rotating away from the largest assets while keeping exposure to selected altcoins.
Why Crypto ETP Outflows Increased
The latest crypto ETP outflows came during a difficult market backdrop.
Bitcoin weakened, U.S. spot Bitcoin ETFs saw large redemptions, and crypto liquidations climbed sharply. Rising oil prices and geopolitical concerns also added pressure, pushing investors toward a more cautious stance.
At the same time, progress around the CLARITY Act may have helped limit broader selling. CoinShares noted that 11 assets still recorded more than $1 million in inflows, showing that parts of the market remained resilient.
What Comes Next for Crypto Funds?
The next test for crypto ETPs will depend on whether risk appetite improves.
Traders are watching geopolitical developments, oil prices, ETF redemption trends, Federal Reserve signals, U.S. jobs data, and major earnings updates. If risk-off pressure eases, flows could stabilize again. But if Bitcoin and Ethereum remain under pressure, funds may continue to see withdrawals.
For now, the latest CoinShares report shows a clear shift in market behavior. Investors are cutting exposure to Bitcoin and Ethereum, but they are still willing to back selected altcoins such as XRP and Solana.
