INSTITUTIONAL | Crypto ETPs Suffer Worst Weekly Outflows of 2026

Global crypto exchange-traded products (ETPs) recorded $1.5 billion in outflows last week extending a sharp reversal in institutional sentiment as bitcoin-linked funds suffered their worst weekly redemptions of 2026, according to data from CoinShares.

The withdrawals follow more than a month of sustained inflows into digital asset investment products and come as investors re-assess risk exposure amid renewed macroeconomic uncertainty, including concerns over inflation and geopolitical tensions in the Middle East.

Bitcoin products accounted for the bulk of the outflows, underscoring how quickly sentiment has shifted after the cryptocurrency failed to sustain recent gains near record highs. The latest wave of selling marks the steepest weekly redemption for bitcoin ETPs this year, CoinShares data showed.

The retreat coincided with weakness in U.S.-listed spot bitcoin ETFs, which have seen slowing inflows in recent sessions as traders rotate into cash and lower-risk assets. Analysts said the pullback may reflect a temporary repositioning rather than a broad institutional exit from crypto markets.

Ethereum-focused products also posted outflows, though at a smaller scale, amid continued uncertainty surrounding the Ethereum ecosystem following a string of high-profile departures from the Ethereum Foundation and ongoing questions about the network’s long-term strategic direction.

The renewed selling pressure comes after digital asset funds had staged a strong recovery earlier this quarter fueled by optimism around institutional adoption, easing monetary policy expectations, and growing interest in regulated crypto investment products.

Still, market participants said volatility remains elevated as investors weigh crypto’s role in portfolios against a backdrop of persistent inflation risks and tightening global liquidity conditions.

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