Crypto funds bleed $454M in outflows as Fed rate-cut hopes fade

Bitcoin drove $404 million of crypto ETP 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 nearly erasing $1.5 billion of inflows recorded in the first two 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.

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