Investors Pull $1.4B from Crypto Funds Amid Policy Jitters and Market Downturn

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A wave of pessimism surrounding US monetary policy sparked a significant reversal in cryptocurrency investments last week.

According to CoinShares, global crypto exchange-traded products (ETPs) witnessed $1.43 billion in outflows, marking the largest withdrawal since March 2025 and ending a two-week inflow streak that had brought in $4.3 billion.

The sell-off was triggered by a downturn in major cryptocurrencies. Bitcoin (BTC) fell from over $116,000 to $112,000, while Ether (ETH) tumbled below $4,100. Ether ETFs were especially impacted, with SoSoValue reporting a single-day outflow of nearly $430 million—the second-largest on record.

James Butterfill, Head of Research at CoinShares, attributed the exodus to “increasingly polarized” investor sentiment toward the Federal Reserve’s stance.