Crypto investment products continued to retreat last week, with outflows totaling $288 million, extending a five-week run of withdrawals that ranks as the longest streak since US spot Bitcoin ETFs began trading in 2024. The latest figure pushes year-to-date redemptions toward the $4 billion mark, although total outflows remain below the $6 billion pulled during the same period a year earlier. Across the broader crypto ETP landscape, trading activity cooled to $17 billion for the week—the quietest pace since mid-2025—underscoring subdued investor appetite amid lingering risk sentiment and regulatory headlines. Bitcoin led the exodus, while bearish bets persisted in short-BTC products. CoinShares also announced a price cut for Europe’s largest physically backed Bitcoin ETP, a move designed to enhance competitiveness, as detailed in the firm’s report and accompanying filing.
Key takeaways
- Last week’s crypto ETP outflows totaled $288 million, extending a five-week streak and lifting year-to-date withdrawals toward $4 billion.
- Bitcoin funds accounted for the lion’s share, with about $215 million pulled, while short-BITCOIN products drew inflows of $5.5 million—the strongest inflow among crypto assets.
- Ether funds declined by approximately $36.5 million, contributing to year-to-date losses near half a billion dollars; XRP and Solana saw modest inflows of around $3.5 million and $3.3 million.
- CoinShares reduced the management fee on the flagship BITC ETF to 0.15% effective immediately, a deliberate move to improve competitiveness for Europe’s largest physically backed Bitcoin ETP.
- US spot Bitcoin ETFs showed signs of renewed activity on a Friday, with volumes rising to about $3.7 billion, even as the week still closed in the red with roughly $316 million in net outflows.
Tickers mentioned: $BTC, $ETH, $XRP, $SOL, $BITC
Sentiment: Bearish
Market context: The ongoing withdrawal cycle in crypto ETPs appears to reflect cautious risk sentiment and selective participation around ETF products, even as some structural improvements—such as lower fees—seek to restore competitiveness. The broader environment includes macro headwinds and evolving regulatory scrutiny that influence investor appetite for crypto-linked products and the speed at which new products attract inflows.
Why it matters
The persistence of outflows in crypto investment products matters because it signals a cautious stance among professional and retail investors toward crypto-linked vehicles, despite constructive developments in the market, such as the introduction of lower-cost products. The outflows are not isolated to one asset class; they span Bitcoin ETPs, Ethereum funds, and smaller-cap crypto listings, illustrating a broad risk-off mood rather than a targeted bet against a single token.
Bitcoin remains the central driver of fund flows. With about $215 million leaving Bitcoin ETPs last week, the asset’s price dynamics continue to influence the mood of the broader ETP segment. Conversely, traders seeking to hedge or express bearish views with limited downside exposure pulled into short-BTC products, which attracted the largest inflow in the crypto-ETP space at $5.5 million. This pattern underscores the persistence of a bear tilt in certain pockets of the market, even as some participants diversify into other assets such as XRP and Solana, which posted modest inflows.
From a product perspective, CoinShares’ move to cut the BITC management fee to 0.15%—a permanent adjustment rather than a promotional incentive—highlights an ongoing alignment between pricing and accessibility. The objective is to attract more long-term holders to Europe’s leading physically backed Bitcoin ETP, potentially stabilizing flows if inflows follow the fee reduction. This is notable because BITC launched in January 2021 with a base fee of 0.98%, so the new rate represents a meaningful re-pricing in a segment that has faced stiff competition and fee pressure.
On the ETF front, spot Bitcoin ETF activity in the United States showed a surprising uptick on what was otherwise a downbeat week. SoSoValue data indicated daily volumes rising to about $3.7 billion, marking a notable shift after several weeks of thinning liquidity. While the week still closed with red ink—$315.9 million in net outflows—the move hints at renewed interest that could foreshadow a more active period if macro conditions remain supportive and if ETF providers continue to refine product features and liquidity channels.
The year-to-date picture remains challenging for Bitcoin ETPs, with net outflows around $1.3 billion in BTC ETPs alone, reflecting the broader struggle to sustain momentum in a market characterized by episodic volatility and regulatory crosswinds. The performance of Ether and other major assets further illustrates that traders are weighing different risk-return profiles, with ETH showing material outflows and XRP/SOL posting smaller inflows as market participants reallocate capital across a wider array of tokens and related products.
In a note accompanying the earnings move, CoinShares’ chief executive Jean-Marie Mognetti framed the pricing shift as a signal of structural change rather than a temporary promotion. The firm’s decision to reduce the BITC fee to 0.15% is intended to reflect an ongoing commitment to accessible pricing, ensuring that investment products remain competitive as demand evolves. Such moves can influence sentiments among institutional and sophisticated retail buyers who closely monitor fee levels when assessing exposure to crypto assets through ETPs.
What to watch next
- Monitor CoinShares’ next weekly flow update for any reversal or continuation of the outflow trend, including asset-specific moves in BTC, ETH, XRP, and SOL.
- Track whether BITC’s lower management fee translates into meaningful inflows in the coming weeks and whether similar pricing adjustments spread to other Europe-based crypto ETPs.
- Watch US spot Bitcoin ETF volumes in the next trading sessions, as a fresh wave of demand could alter the week-to-week flow balance.
- Observe whether BTC ETPs maintain their year-to-date outflow pace or show signs of stabilization amid price movements and investor sentiment shifts.
Sources & verification
- CoinShares weekly report (Volume 274) detailing digital asset fund flows and asset-level movements.
- CoinShares press release announcing the 0.15% management fee on BITC, Europe’s largest physically backed Bitcoin ETP.
- SoSoValue data on US spot Bitcoin ETF daily volumes and weekly flow dynamics.
- Cointelegraph coverage of spot Bitcoin ETF activity and the broader fund-flow landscape, including references to five weeks of net outflows.
Crypto flows, fee changes, and the evolving ETF landscape
Last week’s market activity underscored a cautious but evolving ETF environment. Bitcoin (CRYPTO: BTC) funds led the charge in outflows, underscoring the sensitivity of BTC-linked products to shifting risk appetite. Investment vehicles covering Ethereum (CRYPTO: ETH) also posted declines, while XRP (CRYPTO: XRP) and Solana (CRYPTO: SOL) saw smaller, more mixed moves that suggest a rebalancing among investors seeking diversified exposure. The divergence between BTC and altcoin flows, particularly with Bitcoin ETPs contributing substantially to the overall negative tone, highlights how the crypto-asset landscape remains tethered to macro and regulatory cues as much as to token-specific developments. The industry continues to test pricing dynamics and liquidity provisioning, with BITC (EXCHANGE: BITC) now operating at a reduced fee that could reshape competitive dynamics across European-listed crypto products.
On the volume front, Friday’s data from US spot Bitcoin ETFs showed resilience after a stretch of subdued activity, with daily volumes hitting the $3.7 billion mark. While the week finished with a net outflow, the uptick in volumes points to a potential reawakening of interest in physically backed exposures, particularly as investors reassess risk and reward amid volatility in price action and policy signals. The tweet- and data-backed signals surrounding ETF volumes are relevant for traders watching liquidity conditions, as increased activity can improve execution quality and narrow bid-ask spreads for large trades.
From a product design perspective, the BITC fee reduction is a meaningful, real-world adjustment. Lower fees can improve net returns for long-term holders and may help attract new participants who previously found European crypto ETPs comparatively expensive. The price cut—announced by CoinShares and described in public filings—reflects a broader industry trend toward more competitive cost structures as firms chase incremental inflows in a crowded European and global marketplace. While fee reductions do not guarantee immediate inflows, they set a framework in which investors may re-evaluate exposure levels and allocation across a spectrum of assets, including Bitcoin, Ether, XRP, and Solana, as observed in the latest weekly flows.
In sum, the current footpath for crypto ETPs remains mixed: persistent outflows in Bitcoin-focused products contrast with selective inflows in some altcoin-linked funds, while structural changes such as BITC’s fee cut add a new variable to consider for future allocations. The next few weeks will be telling as ETF providers—alongside market participants—assess whether price dynamics, regulatory updates, and ongoing product improvements translate into a more stable or even improving flow environment.