Crypto Funds See $1.7B Weekly Outflows as Investor Sentiment Turns Defensive

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Investor appetite for digital assets weakened sharply last week, with crypto investment funds recording $1.7 billion in outflows. It marks the second consecutive week of withdrawals and pushes year-to-date flows into a net $1 billion outflow.

According to CoinShares data, the pullback has accelerated a broader decline in assets under management. Since peaking in October 2025, total crypto fund AuM has fallen by $73 billion, driven by both price weakness and sustained capital flight.

CoinShares head of research James Butterfill attributes the downturn to a more hawkish US Federal Reserve leadership, continued whale selling tied to the four-year crypto cycle, and rising geopolitical uncertainty. The US accounted for $1.65 billion of last week’s outflows, underscoring how sensitive crypto markets remain to shifts in macroeconomic expectations.

[tradelikepro]

net $1b out ytd… feels like a reset, maybe prime setup for accumulation if you can stomach the volatility.