Crypto Investment Products Bleed $1.7B in Second Week of Outflows, YTD Turns Red

Core Insights - Digital asset investment products experienced significant outflows, totaling $1.7 billion over the past week, indicating a continued decline in investor sentiment towards the sector [1][2][7] Group 1: Market Trends - Year-to-date inflows have been completely reversed, resulting in a net global outflow of $1 billion [2] - The recent selling pressure is attributed to a more hawkish U.S. Federal Reserve outlook, large-holder distribution related to the four-year crypto cycle, and increasing geopolitical uncertainty [2] Group 2: Regional Analysis - Total assets under management in crypto investment products have decreased by approximately $73 billion since their peak in October 2025, with the U.S. accounting for the majority of outflows, totaling $1.65 billion in the past week [3] - Canada and Sweden also saw notable withdrawals of $37.3 million and $18.9 million, respectively [3] Group 3: Asset Performance - Bitcoin products led the decline with outflows of $1.32 billion, while Ethereum experienced withdrawals of $308 million [4] - Other tokens, such as XRP and Solana, also faced outflows of $43.7 million and $31.7 million, respectively [4] Group 4: Exceptions and Inflows - Short Bitcoin products recorded inflows of $14.5 million, with assets under management increasing by 8.1% year-to-date, indicating a rising demand for downside protection [5] - Hype-focused investment products attracted $15.5 million in inflows, benefiting from increased on-chain activity related to tokenized precious metals [5] Group 5: ETF Insights - U.S. spot Bitcoin ETFs currently manage approximately $113 billion in assets, holding about 1.28 million BTC, with an average purchase price of around $87,830 per coin, which is significantly above current market levels [6]