The post Bitcoin funds face test as $1.7B exodus wipes out 2025 inflows appeared on BitcoinEthereumNews.com.

Crypto funds saw $1.7B in weekly outflows, flipping 2025 flows negative as Bitcoin ETFs trade below cost basis and short BTC, tokenized metals attract fresh demand. Summary CoinShares reported $1.7B in weekly outflows from digital asset investment products, erasing 2025 inflows and slashing AUM by about $73B since October 2025. The U.S. led the retreat, with heavy withdrawals from Bitcoin and Ethereum products, while XRP and Solana also saw outflows as Switzerland and Germany posted small inflows. Bitcoin now trades below the average cost basis of U.S. spot BTC ETFs after back‑to‑back record outflow weeks, even as short BTC products and tokenized metals draw inflows. Digital asset investment products recorded a second consecutive week of substantial outflows, erasing year-to-date gains and pushing net global flows into negative territory, according to a report from CoinShares. The withdrawals totaled $1.7 billion and have fully reversed earlier inflows recorded in 2025, the report stated. Total assets under management across crypto investment products have declined significantly since peaking in October 2025. The outflows occurred as markets responded to a more hawkish U.S. Federal Reserve outlook, large-holder distribution patterns linked to the four-year crypto cycle, and heightened geopolitical uncertainty, according to the report. The United States accounted for the majority of outflows from listed products during the period, CoinShares reported. Canada and Sweden also recorded notable withdrawals, while Switzerland and Germany posted modest inflows. Bitcoin (BTC) products led the decline in outflows, followed by substantial withdrawals from Ethereum products. XRP and Solana investment products also recorded outflows during the period. Short Bitcoin products represented an exception, recording inflows and increasing assets under management year-to-date, suggesting demand for downside protection. Investment products focused on tokenized precious metals also attracted inflows amid increased on-chain activity. Bitcoin outflows continue into February Bitcoin traded below the average cost basis…

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Filed under: News - @ February 2, 2026 3:24 pm