Massive Outflows Slam Crypto ETPs – U.S. Accounts for 97% of Withdrawals

Crypto investment vehicles from major issuers including BlackRock, Grayscale, and Fidelity just logged their heaviest weekly outflows in nearly nine months, with $2 billion pulled from global exchange-traded products as macro uncertainty rattles digital-asset markets.

The latest redemptions bring the three-week total to $3.2 billion, according to new data from CoinShares.

The wave of withdrawals follows a sharp downturn in crypto prices that has pushed total ETP assets under management down from $264 billion in early October to $191 billion today – a staggering $73 billion decline in market value.

James Butterfill, head of research at CoinShares, said shifting interest-rate expectations combined with heavy selling from large long-term holders has kept sentiment firmly negative throughout November. He noted that whale-driven supply and macro volatility have created a feedback loop of risk reduction among both institutional and retail investors.

U.S. Investors Lead the Exodus – Germany Buys the Dip

The outflows were dominated overwhelmingly by the United States, which accounted for 97% of all withdrawals, or roughly $1.97 billion. Switzerland and Hong Kong also saw notable redemptions, though far smaller in scale.

Germany, meanwhile, stood out as the rare contrarian. Investors there added $13.2 million to crypto ETPs during the same period – continuing a pattern of German inflows aligning with market pullbacks.

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Despite the U.S. government reopening after its record-length shutdown, crypto markets remain under pressure. Bitcoin plunged below $95,000, hitting a six-month low even as many traders expected improved liquidity conditions once the government was fully operational again.

Bitcoin and Ethereum Bear the Brunt of Withdrawals

Bitcoin products saw the largest hit, with $1.38 billion flowing out – equivalent to roughly 2% of global BTC ETP holdings.
Ethereum fared even worse proportionally, losing $689 million, or around 4% of its total ETP assets.Solana and XRP also registered smaller outflows of $8.3 million and $15.5 million, respectively.

Still, the repositioning wasn’t entirely risk-off. Investors allocated $69 million into diversified multi-asset crypto ETPs over the last three weeks, hinting at a preference for basket-style exposure during periods of volatility. Short-bitcoin products also logged inflows as traders increased hedges against further downside.

With both macro and crypto-native liquidity tightening, the next several weeks will determine whether this downturn becomes a buying opportunity – or the start of a deeper reset across the digital-asset investment landscape.