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Crypto Funds Lose $288M as ETPs Extend Outflow Run to Five Weeks

by TokenaltcoinFebruary 23, 202601



crypto

Crypto investment products stayed in negative territory for net outflows for another week, thereby completing the sequence of five straight weeks of withdrawals from the market for the first time since the launch of US spot Bitcoin ETFs in 2024.

As per the CoinShares report, crypto exchange-traded products (ETPs) revealed a withdrawal of $288 million from their positions last week, thus resulting in a total of $4 billion cumulative withdrawal.

James Butterfill, the head of research at CoinShares, explained that a five-week exit streak is the longest one in years; however, the total amount of outflows is still less than the $6 billion seen in the corresponding period a year ago.

The turnover of crypto ETPs dropped to $17 billion, a figure that corresponds to the lowest point since July 2025, thus indicating the investors’ growing lack of interest.

Bitcoin and Short Bitcoin Dynamics

Unsurprisingly, Bitcoin (BTC) has again been the chief contributor to the negative market mood as nearly $215 million out of the week’s total $288 million outflows have been on account of Bitcoin funds.

On the other hand, shortBitcoin products were able to secure $5.5 million worth of incoming funds, the greatest amount among all crypto assets, thus illustrating the participants’ bearish stance, although the market is in a strong upward trend.

So far this year, Bitcoin ETPs have been subjected to around $1.3 billion of net withdrawals, which is in line with the performance of other major assets.

Crypto
Source: Central Bank

Also Read: Central Bank of Brazil Unveils Major Institutional Crypto Regulation Through 2027

Ethereum (ETH) wallets followed the general market trend, losing $36.5 million, and thus, total YTD losses are approximately $500 million.

In contrast, XRP and Solana (SOL) wallets both recorded small inflows of $3.5 million and $3.3 million, respectively, which may be interpreted as a selective buying of the alternative tokens amid the general risk-off environment.

Weekly crypto flows
Source: CoinShares

Also Read: Bitcoin Treasury Executives Push Basel On Crypto Rule

Ethereum, XRP, and Solana Flows

CoinShareshas decided to permanently reduce the management fee of its flagship Bitcoin ETP (BITC) to 0.15% (from 0.40%), following lukewarm investor response.

The change has therefore been made retroactively, and the purpose of the move is to enhance the competitiveness of one of the largest physically backed Bitcoin ETPs in Europe, which was launched in 2021 with a 0.98% fee.

Daily flows in US spot Bitcoin ETF
Source: SoSoValue

On the US market, spot Bitcoin ETFs had a brief rally on Friday, with volumes increasing to $3.7 billion from $2.4 billion the previous day, according to SoSoValue.

That trading day resulted in $88 million of inflows being recorded; however, the week ended with a total of $315.9 million of net outflows. In total, US spot Bitcoin ETFs have seen $3.8 billion of withdrawals during their five-week losing streak, resulting in net outflows of $2.6 billion and YTD outflows of $4.5 billion.

Also Read: 12 Malaysian Police Officers Arrested for Crypto Extortion



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