Crypto funds lose $3.74B in four weeks as U.S. outflows drive continued institutional caution.
Crypto investment products from BlackRock, Fidelity, and Bitwise have now recorded four straight weeks of outflows. Data from CoinShares shows that investors pulled out $173 million last week, bringing total withdrawals over the past month to $3.74 billion.
Crypto Funds Shed Billions as Market Sentiment Remains Fragile
Institutional investors are reducing their exposure to digital asset funds. As per recent data, money continues to flow out of major crypto investment products. Weekly withdrawals have slowed, but funds are still leaving the market. Investors remain cautious as price swings and economic signals influence their decisions.
Crypto investment products from BlackRock, Fidelity, and Bitwise recorded a fourth straight week of outflows. According to CoinShares, investors withdrew $173 million last week. Total outflows over the past four weeks reached $3.74 billion.
Redemptions have slowed compared to earlier in the month. Weekly outflows previously peaked at $1.7 billion and stood at $187 million the week before. Even so, selling pressure has not reversed. James Butterfill, head of research at CoinShares, said data points to a continued pullback rather than a recovery.
Assets under management have dropped sharply, with total holdings across crypto exchange-traded products now at $87.04 billion. In late January, that figure was close to $115 billion.
Notably, this decline of more than $28 billion reflects both lower prices and steady withdrawals. Investor redemptions have added pressure to the market rather than simply tracking the price drop.
Meanwhile, trading activity has slowed, with weekly volumes falling to $27 billion from a record $63 billion. Lower trading levels suggest less speculative activity. As a result, investors appear to be moving away from aggressive bets and focusing more on protecting capital.
Daily flow data shows sharp swings in investor behavior. February 2 posted inflows of $561.9 million. Heavy outflows followed, with $544.9 million leaving on February 4 and $434.1 million on February 5.
U.S. Drives $403M Outflows While Overseas Markets Post Gains
Butterfill noted that early-week inflows of $575 million quickly reversed into $853 million in outflows. Slight improvement appeared Friday after softer-than-expected CPI data, bringing $105 million in inflows. Activity points to macro-driven decisions rather than steady accumulation.
Image Source: CoinShares
Regional data shows different investor behavior across markets. In the United States, funds recorded $403 million in weekly outflows. Meanwhile, overseas markets saw combined inflows of $230 million.
Germany led with $115 million, followed by Canada at $46.3 million and Switzerland at $36.8 million. As a result, capital appears to be moving outside the U.S. while American investors cut their exposure.
Image Source: SoSoValue
Bitcoin products carried most of the pressure, losing $133 million. Short-bitcoin products also recorded $15.4 million in outflows over two weeks. Such patterns often appear when traders close positions on both sides of the market. Ethereum funds lost $85.1 million, while smaller products, including Hyperliquid, shed $1 million.
Four weeks of redemptions signal caution among institutional investors. Slower outflows offer some relief, yet conviction remains fragile. Until flows stabilize, defensive positioning may continue to dominate crypto fund markets.
