Crypto investment products shed $288 million last week. Fifth straight week of withdrawals. The bitcoin etf outflows marked the longest exit streak since spot products launched in January 2024.
Cumulative damage: $4 billion gone in five weeks.
James Butterfill runs research at CoinShares. He noted the bleed remains below last year’s pace—$6 billion drained over the same stretch in 2024. But the trend is unmistakable. Trading volume in crypto exchange-traded products collapsed to $17 billion during the week, the lowest print since July 2025. Butterfill called it “growing investor apathy.”
That’s not rotation. That’s capitulation.
**Bitcoin Bears Short Products While Longs Exit**
Bitcoin funds drove the damage. $215 million walked out the door last week alone. Short-Bitcoin products? They pulled $5.5 million in inflows—the largest of any crypto asset. Bearish positioning intensified while long exposure evaporated.
Year to date, Bitcoin ETPs recorded $1.3 billion in net outflows, the deepest hole among major crypto assets. Ethereum funds followed with $36.5 million in weekly exits, bringing year-to-date losses to roughly $500 million. XRP and Solana offered the only bright spots: $3.5 million and $3.3 million in inflows, respectively. Minor compared to the bitcoin etf outflows hemorrhaging capital.
The divergence between Bitcoin and altcoin flows suggests investors aren’t rotating within crypto. They’re leaving entirely.
**CoinShares Slashes Fees as Flows Crater**
CoinShares paired the weak backdrop with a pricing response. Monday, the firm announced a permanent fee cut on its flagship CoinShares Bitcoin ETP, ticker BITC. Management fees dropped to 0.15% effective immediately, down from the 0.98% charged at launch in January 2021.
BITC ranks among Europe’s largest Bitcoin ETPs. The fee cut came as trading activity hit multi-month lows and bitcoin etf outflows stretched into a fifth consecutive week. CoinShares CEO Jean-Marie Mognetti framed the move as structural, not promotional: “This fee reduction reflects our conviction that accessible pricing must be structural, not promotional.”
Translation: compete on price or watch assets drain faster.
Historical precedent suggests fee compression accelerates during bear markets. When Grayscale’s GBTC bled billions in early 2024, competitors undercut with fees as low as 0.20%. CoinShares is following that script. Question is whether 0.15% pricing revives demand or simply slows the exodus.
**Friday’s $88M Inflow Barely Dents the Damage**
US spot Bitcoin ETFs showed a pulse Friday. Trading volume jumped to $3.7 billion from $2.4 billion the prior session, per SoSoValue data. Inflows totaled $88 million—the first positive print after days of withdrawals.
But one session doesn’t reverse five weeks of bitcoin etf outflows. The weekly tally still finished deep in the red: $315.9 million in exits. Over the five-week stretch, US spot Bitcoin ETFs shed $3.8 billion. Net outflows now stand at $2.6 billion, with cumulative year-to-date outflows hitting $4.5 billion.
Volume patterns reveal the stress. Trading activity declined steadily since early February, suggesting exhausted bulls and absent buyers. Friday’s spike could signal a bottoming attempt. Or it could be a dead-cat bounce before another leg lower.
The five-week bitcoin etf outflows streak broke records for the wrong reasons. Since spot Bitcoin ETFs launched in January 2024, no other period matched this sustained capital flight. The 2024 analog saw $6 billion exit over a similar timeframe, but that came during a sharper price correction. Current outflows occurred during relative price stability, indicating sentiment deteriorated independent of volatility.
**What Persistent Outflows Mean for Bitcoin**
Institutional products were supposed to stabilize Bitcoin. Spot ETFs brought regulated access, custodial solutions, and “smart money” capital. Instead, those vehicles are leaking $800 million per week on average over the past five weeks.
Three factors compound the problem. First, short-Bitcoin product inflows show active bearish positioning, not just passive exits. Second, collapsing trading volumes—down to $17 billion from peaks above $30 billion—suggest sidelined capital won’t return quickly. Third, fee cuts like CoinShares’ 0.15% pricing indicate providers are fighting for shrinking assets under management.
Every past Bitcoin bear market saw similar institutional retreat. The 2022 drawdown triggered hedge fund redemptions and mining capitulations. The 2018 collapse wiped out early crypto funds. Current bitcoin etf outflows follow that pattern: initial enthusiasm meets sustained losses, conviction cracks, capital leaves.
Difference this time? ETFs provide transparent daily flow data. No hiding. $4 billion in outflows over five weeks shows up in real-time reporting. That transparency cuts both ways—when flows reverse, everyone will see it immediately.
**The Path Forward Depends on One Thing**
For now, the bitcoin etf outflows trajectory points lower. Friday’s $88 million inflow offered a brief counter-signal, but the weekly and monthly trends overwhelm that single session. Next test: whether outflows accelerate past $1 billion per week or stabilize near current levels.
Polymarket odds of Bitcoin dropping under $55,000 hit 72%, per related reporting. That aligns with persistent bearish flows and short product demand. If Bitcoin breaks lower, expect bitcoin etf outflows to intensify as stop-losses trigger and momentum sellers pile in.
Alternatively, sustained weekly inflows above $500 million could signal a sentiment shift. That hasn’t happened since January. Until it does, the five-week exit streak defines the dominant trend.
All eyes on next week’s flow data.
