Crypto investment products are experiencing significant outflows as investor caution rises, driven largely by geopolitical tensions and a broader risk-off environment. Recent data from CoinShares highlights substantial redemptions from bitcoin and ether funds, even as selected altcoins continue to attract capital.
Heavy redemptions for bitcoin and ether
Crypto investment products saw $1.47 billion in outflows over the past week, marking a second straight week of heavy withdrawals, according to data from asset manager CoinShares. That follows $1.07 billion in redemptions the previous week, bringing the two-week total to $2.54 billion.
Bitcoin products accounted for roughly $1.3 billion of last week’s exits, the largest weekly withdrawal so far in 2026. Ether products posted $223 million in outflows over the same period.
According to CoinShares, the firm’s head of research, James Butterfill, linked the broad pullback to rising risk aversion tied to geopolitical tensions, particularly concerns around Iran.
Assets under management and market structure
Total assets under management in crypto exchange-traded products stood at about $148.7 billion last week. Bitcoin funds made up $120.2 billion of that figure, or roughly 80% of the total.
The sharp outflows have had a material impact on bitcoin’s fund flows this year. A six-day streak of redemptions from bitcoin ETFs has almost wiped out all net inflows amassed in 2026, leaving year-to-date flows at just $536 million. The pressure has helped keep bitcoin trading below $80,000, with traders watching support in the $74,000–$75,000 range for signs of the next move.
Ether is facing similar, if smaller, pressure. The second-largest token has endured multiple weeks of withdrawals, and its market dominance has slipped below 10%, underscoring weaker conviction in the asset relative to bitcoin in the current risk-off phase.
Altcoins draw selective inflows
Despite selling in the largest crypto products, a group of altcoin funds continued to attract capital. Nine altcoin products each recorded more than $1 million in inflows.
XRP led with $31.8 million in net new money, followed by Solana with $7.7 million. CoinShares said this pattern suggests traders are not abandoning the asset class entirely but rotating into selected names where they see stronger project fundamentals or differentiated narratives.
Additional inflows were reported for:
- Hyperliquid exchange-traded products: $72.3 million
- Sui: $600,000
- Chainlink: $400,000
Short bitcoin products, which benefit when the price of bitcoin falls, recorded $10.2 million in inflows, highlighting growing demand for downside exposure or hedging strategies.
Regional breakdown of flows
Outflows were broad-based across major markets. The United States saw the largest withdrawals by far, with $1.43 billion exiting crypto products, including $1.26 billion from spot bitcoin ETFs.
Other key figures included:
- Switzerland: $16.2 million in outflows
- Canada: $12.5 million in outflows
- Hong Kong: $12.2 million in outflows
- Germany: $4.4 million in outflows
The Netherlands stood out as the only market with notable net inflows, adding $6.6 million. Australia recorded a smaller $700,000 in inflows.
CoinShares noted that the global spread of redemptions, spanning North America, Europe and Asia, points to a macro-driven retreat rather than a localized or product-specific issue.
Risk-off mood tied to geopolitics
Butterfill’s analysis links the current selling to escalating geopolitical tensions, particularly those involving the U.S. and Iran, which are overshadowing token-specific or regulatory developments.
The pattern across bitcoin, ether and regional markets suggests a sustained reduction in capital allocation from large-scale market participants rather than a short-lived reaction. At the same time, the resilience of selected altcoin products indicates that some traders are repositioning within crypto rather than exiting completely.
Outlook depends on macro catalysts
Near-term direction for crypto funds and prices appears closely tied to macro and geopolitical events. A de-escalation in tensions or clearer macroeconomic signals could quickly shift sentiment and spark a rebound in flows.
For now, the market remains fragile. Stabilization in ETF and ETP flows is likely to be a key precondition for any durable move higher in the leading tokens, while altcoin performance will continue to depend on whether traders remain willing to take targeted risks within a broadly cautious environment.
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