Complete Guide to Crypto Funds Bleed $454m In Outflows As Fed Rate-cut Hopes Fade

Bitcoin led with $405 million of outflows last week, with the US shedding $569 million, as several altcoins and European funds posted modest inflows.

Crypto investment products posted significant outflows last week, with a four-day run of withdrawals erasing part of the $1.5 billion in inflows seen during the first two trading days of 2026.

Crypto exchange-traded products (ETPs) saw $454 million in outflows last week, European crypto asset manager CoinShares reported on Monday.

“This turnaround in sentiment appears to stem mainly from investor worries over the diminishing prospects of a Federal Reserve interest rate cut in March following recent macro data releases,” CoinShares’ head of research, James Butterfill, said in the update.

Despite last week’s outflows, month-to-date flows remained positive at $229 million, following $582 million of inflows the previous week.

Major cryptocurrency Bitcoin (BTC) drove the negative sentiment in crypto ETPs last week, posting outflows of $405 million. Short-BTC funds saw minor outflows of $9 million, leaving overall market sentiment for the asset mixed, Butterfill noted.

On the other hand, altcoin funds for assets such as XRP (XRP), Solana (SOL) and Sui (SUI) saw a persisting positive trend, with inflows totaling around $46 million, $33 million and $8 million, respectively.

Ether (ETH) funds saw $116 million outflows, while multi-asset altcoin products also posted combined outflows of $21 million.

Geographically, the United States was the only market to show negative sentiment, with outflows reaching $569 million.

By contrast, several countries, including Germany, Canada and Switzerland, saw inflows of $59 million, $25 million and $21 million, respectively.

Source: CoinTelegraph