Bitcoin, Ethereum ETF Investments Flip Negative for 2026 as Crypto Funds Shed $1.7B
Digital asset investment products experienced a second consecutive week of outflows totaling $1.7 billion, with year-to-date global net outflows at around $1 billion, according to CoinShares. The U.S. dominated redemptions with $1.65 billion withdrawn, while Canada and Sweden also saw significant outflows. Switzerland and Germany registered modest inflows. Withdrawals were broad-based: Bitcoin products lost $1.32 billion, Ethereum products $308 million, and previously favored altcoins, including XRP and Solana, also turned negative. In contrast, short-Bitcoin products saw $14.5 million in inflows. Contributing factors include expectations of a more hawkish Federal Reserve Chair, ongoing large-scale sales by major holders, and geopolitical instability. Since October 2025 highs, total assets under management have decreased by $73 billion amid a sharp market downturn, with Bitcoin trading down 9.9% and Ethereum over 18% in the past week. The Federal Reserve Chair nomination of Kevin Warsh has impacted sentiment, though analysts note his policy stance is more dovish on rates but skeptical regarding balance sheet expansion. Markets expect continued rate cuts but stable market liquidity.
