TLDR
- Digital asset investment products experienced $1.7 billion in outflows last week, marking a second consecutive week of losses.
- The United States accounted for the majority of withdrawals with $1.65 billion in outflows.
- Bitcoin ETFs saw the largest outflows, with $1.32 billion withdrawn amid a price decline of nearly 10% over the past week.
- Ethereum ETFs also faced significant outflows of $308 million as Ethereum’s price dropped by more than 18% in the same period.
- The market downturn is linked to a more hawkish U.S. Federal Reserve and ongoing geopolitical instability.
Last week, digital asset investment products experienced outflows totaling $1.7 billion, marking a second consecutive week of losses. This downturn leaves the year-to-date global flow at a net outflow of approximately $1 billion. The United States led these withdrawals, with $1.65 billion in outflows, while other countries like Canada and Sweden saw smaller losses.
Bitcoin ETFs See Heavy Outflows in 2026
Bitcoin investment products saw the majority of the losses, with $1.32 billion withdrawn in the past week. Bitcoin ETFs, once a top investment vehicle, have turned negative as investors pull funds from the market. The outflows reflect broader investor sentiment as Bitcoin’s price dips below $80,000, down nearly 10% over the past seven days.
The significant Bitcoin ETF outflows are a reflection of several market factors. The market has been reacting to a more hawkish U.S. Federal Reserve, as well as concerns over the broader economic climate. Bitcoin’s performance has also been impacted by continued whale selling, along with heightened geopolitical risks.
Ethereum ETFs Also See Withdrawals
Ethereum investment products faced outflows of $308 million, continuing the downward trend seen across digital asset funds. Ethereum ETFs are also feeling the pressure as investors pull back amid the broader market downturn. Ethereum’s price, currently near $2,370, has dropped more than 18% in the past week, far from its peak levels.
These Ethereum ETF withdrawals suggest a lack of confidence among investors as the market faces uncertainties. With Ethereum still far from its all-time high, the outflows reflect concerns over its long-term outlook. Ethereum’s ongoing challenges have compounded its struggles in attracting investor capital amid the bearish market.
Broader Market Reaction to Federal Reserve Developments
The Federal Reserve’s recent actions have contributed to the market’s bearish sentiment. U.S. President Donald Trump nominated former Federal Reserve governor Kevin Warsh as the new chair. Warsh’s views on cryptocurrency have shifted over the years, with some seeing him as a more hawkish figure while others suggest he may be less aggressive.
Despite his reputation, market analysts do not expect Warsh’s nomination to significantly alter the Federal Reserve’s approach. “The nomination largely reinforces the status quo: the Fed is likely to continue to cut rates this year,” said Thomas Perfumo of Kraken. This move, along with geopolitical instability, has led to market hesitancy and the retreat from crypto investments.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
