Weekly crypto ETP outflows reach $454 million as hopes for Fed easing dim: CoinShares

Global crypto investment products issued by asset managers including Fidelity, Grayscale, and Ark Invest recorded $454 million in net outflows last week as investor optimism around a potential Federal Reserve interest rate cut in March faded in the face of recent macroeconomic data.

In CoinShares’ latest weekly report, Head of Research James Butterfill noted that a four-day run of net outflows totaling roughly $1.3 billion nearly wiped out the early-year inflows of about $1.5 billion.

Hotter-than-expected U.S. macro data releases — including resilient services-sector activity, persistent labor-market strength, and indications of sticky inflation pressures — have prompted markets to dial back easing expectations. CME FedWatch probabilities for a March cut have also declined from earlier levels around 45% to 52%, while broader 2026 cut expectations have narrowed toward only one or two total moves.

"This turnaround in sentiment appears to stem mainly from investor worries over the diminishing prospects of a Federal Reserve interest rate cut in March following recent macro data releases," Butterfill wrote.

Bitcoin, ether, and the broader cryptocurrency market initially rallied at the start of 2026, cushioned by a two-day streak of capital inflows on Wall Street. Crypto prices have since slumped amid a subsequent reversal in flows.

BTC is currently down over 2% in the last week, with ETH posting similar price performance, as The Block’s price page shows.

Expand Chart

U.S. bitcoin funds dominate outflows

Bitcoin-linked products bore the brunt of the retreat, seeing approximately $405 million in redemptions over the past week, per CoinShares. The report also showed $9.2 million in outflows from short-Bitcoin products, underscoring a slightly mixed positioning in the flagship cryptocurrency.

Expand Chart

Ethereum investment products followed suit, with $116 million in net outflows, while other multi-asset products shed an additional $21 million. Smaller outflows were recorded in Binance and Aave-focused products, which saw $3.7 million and $1.7 million in net withdrawals, respectively.

Despite the negative trend in larger-cap assets, sentiment around some alternate tokens remained constructive. Solana-based investment products attracted $32.8 million in inflows, while XRP and Sui funds drew $45.8 million and $7.6 million, respectively. These flows likely signal a degree of selective risk appetite among investors, even as broader sentiment turned cautious.

Regionally, the United States stood out as the only market with significant net outflows, recording $569 million in redemptions. In contrast, Germany led inflows with $58.9 million, followed by Canada with $24.5 million and Switzerland with $21 million, suggesting that appetite for digital asset funds remains more buoyant outside the U.S.