Trading Secrets 26-01-2026 14:23 4 Views

Crypto investment products see $1.7B weekly outflows as Bitcoin, Ether slide

Digital asset investment products saw the largest weekly outflows since mid-November 2025, totalling $1.73 billion, according to CoinShares data.

The outflows point to a sharp shift in investor confidence amid broader market pressures, with the exodus coinciding with price declines in major cryptocurrencies.

Gold’s explosion to record highs above $5,000 looks to have amplified the capital exits as investors fled to the safe-haven asset.

Bitcoin leads weekly outflows

According to the report, Bitcoin recorded outflows of $1.09 billion, marking the largest single-week withdrawal since mid-November 2025.

The figure stands in sharp contrast to inflows seen earlier in 2026, with US spot Bitcoin ETFs alone posting hundreds of millions of dollars in net redemptions in recent weeks.

“Dwindling expectations for interest rate cuts, negative price momentum and disappointment that digital assets have not participated in the debasement trade yet have likely fuelled these outflows,” CoinShares head of research James Butterfill wrote.

Institutional profit-taking appears to have intensified as Bitcoin slipped to around $87,800 last week.

The decline has pushed the cryptocurrency well below its January 2026 highs of $97,900 and its November 2025 peak above $100,000.

Bitcoin has remained under pressure since reaching an all-time high above $126,000 in October 2025.

Ethereum and XRP attract exits, Solana sees inflows

While Bitcoin saw roughly $1 billion in outflows, major altcoins were also under pressure.

Ethereum recorded $630 million in withdrawals, signalling a weakening appetite for the second-largest cryptocurrency.

The outflows coincided with ETH falling below the $3,000 level, a key threshold for bullish sentiment.

Prices have since tested levels below $2,700 and, despite signs of accumulation by large holders, broader market conditions point to the risk of further declines.

Analysts say the technical setup remains fragile and could support another leg lower, potentially intensifying fund redemptions.

Among major tokens, XRP saw outflows of $18.2 million, adding to pressure on the asset, which has continued to trade near recent lows.

Solana, however, diverged from the broader trend, attracting $17.1 million in inflows, even as SOL prices slipped to lows near $118 amid wider market weakness.

CoinShares data also showed modest inflows into BNB and Chainlink exchange-traded products, pointing to continued interest in select high-performance altcoins despite strain across the sector.

In a recent post on X, CoinShares analysts said outflows from crypto investment products have risen amid renewed liquidity concerns.

They added that macroeconomic and geopolitical developments weighed on risk assets over the past week, including renewed tariff threats by US President Donald Trump toward Europe amid tensions related to Greenland.

Developments in Japan and uncertainty surrounding the next Federal Reserve chair have also contributed to the cautious tone.

“Uncertainty around the next Federal Reserve Chair and a firmer stance from the Bank of Japan have weighed on risk assets this week. Fund flows point to a more cautious investor stance rather than a breakdown in fundamentals,” the analysts said.

The post Crypto investment products see $1.7B weekly outflows as Bitcoin, Ether slide appeared first on Invezz


Other news