Bitcoin Funds Lead Weekly Outflows as Short‑BTC Products Attract New Capital
Crypto investment products continued to shed assets last week, extending a five‑week losing streak – the longest series of withdrawals since US spot Bitcoin ETFs launched in early 2024.
Weekly flow snapshot
- Total outflows: $288 million across crypto‑linked exchange‑traded products (ETPs) and funds, the fifth consecutive week of net redemptions.
- Cumulative loss: The net outflow since the start of the year now sits at roughly $4 billion, according to CoinShares’ latest weekly report. This figure remains below the $6 billion that left similar products over the same period in 2025.
- Trading volume: Crypto ETP turnover fell to $17 billion, the lowest weekly level recorded since July 2025, suggesting waning investor activity.
Bitcoin remains the main drag
Bitcoin‑linked vehicles accounted for $215 million of the week’s outflows, reinforcing the cryptocurrency’s role as the primary source of negative sentiment in the sector.
- Short‑Bitcoin products: While long‑exposure funds saw withdrawals, short‑Bitcoin ETPs logged $5.5 million in inflows, the largest net positive flow among all crypto assets for the week. This trend underscores a persisting bearish outlook among institutional investors.
- Year‑to‑date picture: Bitcoin ETPs have recorded a net outflow of $1.3 billion so far in 2026, the deepest cumulative loss among the major digital assets covered by CoinShares.
Other digital assets
| Asset | Weekly net flow | YTD net position |
|---|---|---|
| Ethereum (ETH) | –$36.5 million | –≈$500 million |
| XRP | +$3.5 million | modest net inflow |
| Solana (SOL) | +$3.3 million | modest net inflow |
Ether’s outflows placed it as the second‑largest loser after Bitcoin, while XRP and Solana managed to attract small amounts of fresh capital.
Fee reduction by CoinShares
In response to the sluggish flow environment, CoinShares announced a permanent reduction of the management fee on its flagship physically‑backed Bitcoin ETP (BITC) from 0.98 % to 0.15 %. The move is intended to make the product more price‑competitive in Europe, where BITC is one of the largest Bitcoin‑linked ETPs. CoinShares CEO Jean‑Marie Mognetti framed the cut as a “structural” pricing decision rather than a short‑term promotion.
Spot Bitcoin ETFs in the US
US spot Bitcoin ETFs showed a brief uptick in trading activity on Friday, with daily volume rising to $3.7 billion from $2.4 billion the previous day (SoSoValue data).
- Inflows: $88 million were added on the day, but the week still closed with $315.9 million in net outflows.
- Cumulative YTD outflows: After a five‑week stretch that saw $3.8 billion withdrawn, total outflows now stand at $4.5 billion.
Analysis
- Sustained bearish sentiment – The combination of sizable Bitcoin outflows and inflows into short‑Bitcoin products points to a market that remains cautious about price appreciation. Investors appear to be hedging or positioning for further downside.
- Liquidity pressure on long‑exposure products – With trading volumes at their lowest since mid‑2025, fund managers may struggle to maintain tight spreads, potentially discouraging new entrants.
- Fee competition as a catalyst – CoinShares’ fee cut could set a precedent for other providers, especially in Europe where fee differentials are a key differentiator for retail‑focused products. A lower expense ratio might help stabilize or even reverse outflows if price performance improves.
- US ETF volume volatility – The brief rebound in spot Bitcoin ETF turnover suggests that trading activity can still be sparked by short‑term market events, but the broader outflow trend indicates that volume spikes alone are insufficient to reverse the net redemption trajectory.
Key Takeaways
- Bitcoin funds led the market’s weekly outflows, with $215 million withdrawn, while short‑Bitcoin products attracted $5.5 million in new capital.
- Crypto ETP trading activity hit a 2025 low, highlighting reduced investor engagement.
- CoinShares slashed its Bitcoin ETP fee to 0.15 %, a move aimed at improving competitiveness amid weak flows.
- US spot Bitcoin ETFs posted modest inflows on Friday, yet the weekly picture remains negative with $315.9 million net outflow and $4.5 billion outflows year‑to‑date.
- Overall market sentiment stays bearish, reflected in continued outflows from long‑exposure products across Bitcoin, Ethereum, and other major tokens.
The data presented reflects the latest figures available from CoinShares and SoSoValue as of 23 February 2026.
Source: https://cointelegraph.com/news/crypto-etp-five-week-exit-fresh-288-million-outflows?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
