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Crypto ETFs Just Lost $1.9 Billion—And the Bleeding May Not Be Over

MarketDash Editorial Team
14 days ago
Cryptocurrency investment products hemorrhaged $1.9 billion last week as Bitcoin and Ethereum funds extended their losing streak to four consecutive weeks. With outflows now totaling $4.9 billion and key technical levels under pressure, investors are bracing for what comes next.

If you're keeping score at home, cryptocurrency investment products just wrapped up their fourth consecutive week of outflows, shedding $1.9 billion in the process. That brings the month-long bleeding to $4.9 billion—roughly 2.9% of all assets under management. Not exactly the kind of streak investors were hoping for.

This Ranks Among the Worst Selloffs Since 2018

According to James Butterfill, head of research at CoinShares, this redemption wave marks the third-largest run of outflows since 2018. The damage stems from a nasty combination: relentless selling pressure meeting falling cryptocurrency prices. The result? Assets under management have declined 36% during this streak, a decline that reflects both investor flight and deteriorating asset values.

But here's where it gets interesting. Despite the carnage, year-to-date flows remain positive at $44.4 billion. So we're not talking about total capitulation—at least not yet.

Bitcoin (BTC) Takes the Biggest Hit, Then Bounces

Bitcoin led the exodus with $1.27 billion in outflows from exchange-traded products last week. That's a hefty chunk, and it followed seven straight days of redemptions that had the crypto crowd wondering where the floor might be.

Then Friday happened. Bitcoin (BTC) ETPs suddenly recorded $225 million in inflows, snapping the losing streak and offering what Butterfill called "tentative signs of a turnaround in sentiment." Whether this bounce has legs or turns into another false start remains to be seen, but it's worth noting that short Bitcoin products are having a moment—they pulled in $19 million last week and have seen their assets under management surge 119% over the past three weeks.

Ethereum (ETH) Bleeds Even Harder

If you thought Bitcoin had it rough, Ethereum might want a word. Ethereum (ETH) products faced $589 million in net outflows, with U.S. spot Ethereum ETFs accounting for roughly $500 million of that total. CoinShares specifically pointed to BlackRock's Ethereum product as leading the outflows—a notable detail given BlackRock's market influence.

Meanwhile, other crypto assets painted a mixed picture. Solana (SOL) ETPs hemorrhaged $156 million, continuing its own rough patch. But XRP (XRP) bucked the trend entirely, attracting $89.3 million in inflows as Bitwise launched its new U.S. spot XRP ETF. Apparently, novelty still sells in crypto land.

Geographic Breakdown: The U.S. Leads the Exodus

When you drill down by region, the redemption story becomes even clearer. U.S. funds recorded a staggering $1.69 billion in outflows—the lion's share of global redemptions. That's not surprising given the size of the U.S. market, but the scale is still notable.

European investors weren't feeling bullish either. Germany saw $118.2 million leave, Switzerland lost $79.7 million, and Canada and Sweden reported $27.1 million and $26.8 million in redemptions respectively. The pattern was consistent: risk appetite fading across most developed markets.

Only two regions swam against the tide. Brazil and Australia posted modest inflows of $3.5 million and $2 million respectively—small bright spots in an otherwise gloomy landscape.

What the Charts Are Saying About Bitcoin

From a technical perspective, Bitcoin is trying to stage a rebound from the $82,000 support zone, but the setup looks fragile. The broader structure remains bearish as long as price holds beneath the descending trendline drawn from the $120,000 peak. That's the line in the sand that matters.

Right now, there's an entire cluster of exponential moving averages between $94,000 and $106,000 that's functioning as a ceiling, turning every bounce into a supply zone where sellers emerge. A daily close above $88,000 would ease some short-term pressure, but the real shift in momentum requires breaking through $94,000 convincingly.

The downside risk? If Bitcoin fails to hold $82,000, the next support level sits near $75,000. That would represent another meaningful leg down and likely trigger fresh waves of selling.

Ethereum's Technical Picture Looks Just as Precarious

Ethereum is attempting to stabilize around $2,800 after last week's breakdown, but the market keeps printing lower highs—never a good sign when you're hoping for a reversal. The descending trendline from the $4,800 peak remains the dominant ceiling, with the 20-day exponential moving average at $3,100 acting as the first major barrier to overcome.

The Relative Strength Index is nearing oversold territory, which sometimes signals a bounce, but there's no convincing reversal pattern yet. A close above $2,900 would show early stability and give bulls something to work with, while reclaiming $3,100 is the level that would actually change the momentum picture.

On the downside, losing $2,800 would open the path toward $2,500—a key demand zone from earlier in the cycle. That's the level where longer-term holders might step in, but getting there would mean enduring more pain first.

Reading the Tea Leaves

So what does all this mean? The four-week outflow streak represents real money leaving the crypto ecosystem, driven by a combination of price weakness and deteriorating sentiment. The fact that this marks the third-worst outflow period since 2018 tells you this isn't just routine profit-taking—it's a meaningful shift in positioning.

But context matters. Year-to-date flows remain solidly positive, and Friday's $225 million inflow into Bitcoin products suggests the narrative could shift quickly if price action stabilizes. Crypto markets are nothing if not volatile, and sentiment can flip on a dime.

For now, the technical levels outlined above are what matter most. Bitcoin needs to reclaim $94,000 and Ethereum needs to break $3,100 to convince skeptics that the worst is over. Until then, the path of least resistance remains down, and investors would be wise to watch those support levels carefully. The next few weeks should tell us whether Friday's bounce was the start of something real or just another head fake in a brutal downtrend.

Back to News

Crypto ETFs Just Lost $1.9 Billion—And the Bleeding May Not Be Over

MarketDash Editorial Team
14 days ago
Cryptocurrency investment products hemorrhaged $1.9 billion last week as Bitcoin and Ethereum funds extended their losing streak to four consecutive weeks. With outflows now totaling $4.9 billion and key technical levels under pressure, investors are bracing for what comes next.

If you're keeping score at home, cryptocurrency investment products just wrapped up their fourth consecutive week of outflows, shedding $1.9 billion in the process. That brings the month-long bleeding to $4.9 billion—roughly 2.9% of all assets under management. Not exactly the kind of streak investors were hoping for.

This Ranks Among the Worst Selloffs Since 2018

According to James Butterfill, head of research at CoinShares, this redemption wave marks the third-largest run of outflows since 2018. The damage stems from a nasty combination: relentless selling pressure meeting falling cryptocurrency prices. The result? Assets under management have declined 36% during this streak, a decline that reflects both investor flight and deteriorating asset values.

But here's where it gets interesting. Despite the carnage, year-to-date flows remain positive at $44.4 billion. So we're not talking about total capitulation—at least not yet.

Bitcoin (BTC) Takes the Biggest Hit, Then Bounces

Bitcoin led the exodus with $1.27 billion in outflows from exchange-traded products last week. That's a hefty chunk, and it followed seven straight days of redemptions that had the crypto crowd wondering where the floor might be.

Then Friday happened. Bitcoin (BTC) ETPs suddenly recorded $225 million in inflows, snapping the losing streak and offering what Butterfill called "tentative signs of a turnaround in sentiment." Whether this bounce has legs or turns into another false start remains to be seen, but it's worth noting that short Bitcoin products are having a moment—they pulled in $19 million last week and have seen their assets under management surge 119% over the past three weeks.

Ethereum (ETH) Bleeds Even Harder

If you thought Bitcoin had it rough, Ethereum might want a word. Ethereum (ETH) products faced $589 million in net outflows, with U.S. spot Ethereum ETFs accounting for roughly $500 million of that total. CoinShares specifically pointed to BlackRock's Ethereum product as leading the outflows—a notable detail given BlackRock's market influence.

Meanwhile, other crypto assets painted a mixed picture. Solana (SOL) ETPs hemorrhaged $156 million, continuing its own rough patch. But XRP (XRP) bucked the trend entirely, attracting $89.3 million in inflows as Bitwise launched its new U.S. spot XRP ETF. Apparently, novelty still sells in crypto land.

Geographic Breakdown: The U.S. Leads the Exodus

When you drill down by region, the redemption story becomes even clearer. U.S. funds recorded a staggering $1.69 billion in outflows—the lion's share of global redemptions. That's not surprising given the size of the U.S. market, but the scale is still notable.

European investors weren't feeling bullish either. Germany saw $118.2 million leave, Switzerland lost $79.7 million, and Canada and Sweden reported $27.1 million and $26.8 million in redemptions respectively. The pattern was consistent: risk appetite fading across most developed markets.

Only two regions swam against the tide. Brazil and Australia posted modest inflows of $3.5 million and $2 million respectively—small bright spots in an otherwise gloomy landscape.

What the Charts Are Saying About Bitcoin

From a technical perspective, Bitcoin is trying to stage a rebound from the $82,000 support zone, but the setup looks fragile. The broader structure remains bearish as long as price holds beneath the descending trendline drawn from the $120,000 peak. That's the line in the sand that matters.

Right now, there's an entire cluster of exponential moving averages between $94,000 and $106,000 that's functioning as a ceiling, turning every bounce into a supply zone where sellers emerge. A daily close above $88,000 would ease some short-term pressure, but the real shift in momentum requires breaking through $94,000 convincingly.

The downside risk? If Bitcoin fails to hold $82,000, the next support level sits near $75,000. That would represent another meaningful leg down and likely trigger fresh waves of selling.

Ethereum's Technical Picture Looks Just as Precarious

Ethereum is attempting to stabilize around $2,800 after last week's breakdown, but the market keeps printing lower highs—never a good sign when you're hoping for a reversal. The descending trendline from the $4,800 peak remains the dominant ceiling, with the 20-day exponential moving average at $3,100 acting as the first major barrier to overcome.

The Relative Strength Index is nearing oversold territory, which sometimes signals a bounce, but there's no convincing reversal pattern yet. A close above $2,900 would show early stability and give bulls something to work with, while reclaiming $3,100 is the level that would actually change the momentum picture.

On the downside, losing $2,800 would open the path toward $2,500—a key demand zone from earlier in the cycle. That's the level where longer-term holders might step in, but getting there would mean enduring more pain first.

Reading the Tea Leaves

So what does all this mean? The four-week outflow streak represents real money leaving the crypto ecosystem, driven by a combination of price weakness and deteriorating sentiment. The fact that this marks the third-worst outflow period since 2018 tells you this isn't just routine profit-taking—it's a meaningful shift in positioning.

But context matters. Year-to-date flows remain solidly positive, and Friday's $225 million inflow into Bitcoin products suggests the narrative could shift quickly if price action stabilizes. Crypto markets are nothing if not volatile, and sentiment can flip on a dime.

For now, the technical levels outlined above are what matter most. Bitcoin needs to reclaim $94,000 and Ethereum needs to break $3,100 to convince skeptics that the worst is over. Until then, the path of least resistance remains down, and investors would be wise to watch those support levels carefully. The next few weeks should tell us whether Friday's bounce was the start of something real or just another head fake in a brutal downtrend.