Crypto ETP Outflows Hit $1.47B as Bitcoin ETFs Dominate Losses

Crypto exchange-traded products (ETPs) saw a staggering $1.47 billion in outflows last week, marking the second consecutive week of significant withdrawals, according to CoinShares. Bitcoin (BTC) funds bore the brunt, accounting for $1.3 billion in outflows—its largest weekly loss of 2026. Ether (ETH) funds also posted $223 million in redemptions. This brings total assets under management (AUM) in crypto ETPs to $148.7 billion, with Bitcoin products dominating at $120.2 billion.

James Butterfill, head of research at CoinShares, attributed the selling to deepening global risk-off sentiment, reportedly driven by geopolitical concerns such as Iran-related tensions, despite regulatory progress around the U.S. CLARITY Act.

Altcoins Buck the Trend

Not all crypto products followed Bitcoin’s downward trajectory. XRP (XRP) led altcoin inflows with $31.8 million, while Solana (SOL) added $7.7 million. Smaller inflows were recorded for Sui (SUI) and Chainlink (LINK), at $600,000 and $400,000, respectively. Short Bitcoin products, which benefit from bearish bets, saw $10.2 million in inflows, aligning with the broader cautious market tone.

Interestingly, Hyperliquid (HYPE) exchange-traded funds (ETFs) recorded $72.3 million in inflows, reflecting some investor appetite for niche crypto assets even amid widespread outflows.

U.S. Leads Global Outflows

Geographically, the United States led the exodus, with $1.43 billion in outflows, including $1.26 billion from U.S.-listed spot Bitcoin ETFs, according to data from SoSoValue. Other regions followed suit, with Switzerland seeing $16.2 million in outflows, Canada $12.5 million, and Hong Kong $12.2 million. Germany also reported $4.4 million in withdrawals.

In contrast, the Netherlands and Australia managed to buck the trend with inflows of $6.6 million and $700,000, respectively.

Broader Market Context

Bitcoin’s recent price action underscores the cooling sentiment. As of May 26, BTC is trading at $77,363, down 2% in the past 24 hours, with a market cap of $1.53 trillion. Over the last week, the cryptocurrency has struggled to break past the $78,000–$80,000 resistance zone, reflecting muted demand after a brief rally above $80,000 earlier this month. Institutional selling, including a $1.5 billion Bitcoin liquidation by miner Marathon Digital Holdings (MARA) on May 12, has contributed to this consolidation.

The broader risk-off environment, combined with declining U.S. ETF inflows, has weighed on market sentiment. April saw strong inflows of $2.44 billion into U.S.-listed Bitcoin ETFs, but May's data suggests a reversal of that trend. Despite this, exchange reserves remain near decade lows, indicating constrained available supply, which could provide support for prices in the medium term.

What to Watch

Looking ahead, market participants will be closely monitoring macroeconomic developments and regulatory clarity, particularly around U.S. crypto legislation. Bitcoin's ability to hold above its support levels near $76,000 will be critical as traders assess whether the current risk-off sentiment deepens or stabilizes.