Key Takeaways
- Crypto investment products saw $454 million in net outflows last week, reversing early 2026 inflows.
- U.S.-based products drove the decline with $569 million in outflows, while Europe and Canada posted inflows.
- Bitcoin led losses, but XRP and Solana attracted fresh capital.
Crypto investment products recorded $454 million in net outflows in the second week of January, interrupting the bullish momentum that marked the start of 2026.
The pullback followed a shift in macroeconomic expectations, as recent data reduced the likelihood of a Federal Reserve interest rate cut in March.
That change in outlook prompted investors to scale back exposure to risk assets, including digital assets.
Bitcoin and ETH Lead the Outflows
Bitcoin (BTC) accounted for the largest share of withdrawals, with $405 million exiting crypto investment products over the week.
Adding to the mixed sentiment, short-Bitcoin products also saw $9.2 million in outflows, suggesting that some investors unwound bearish positions alongside long exposure.
Ethereum (ETH) followed with $116 million in outflows, while multi-asset crypto products recorded $21 million in withdrawals.
Together, these figures point to broad caution toward established digital assets amid renewed market uncertainty.
While Bitcoin and Ethereum dominated the outflows, several altcoins moved in the opposite direction.
XRP led inflows with $45.8 million, followed by Solana (SOL) at $32.8 million and Sui (SUI) at $7.6 million.
The divergence suggests that some investors are rotating capital away from large-cap assets toward projects perceived to have stronger momentum or near-term catalysts.
This split between outflows from core assets and inflows into select altcoins highlights a more nuanced market dynamic, where overall risk aversion coexists with targeted positioning.
The pattern may point to early-stage rotation rather than a broad exit from the asset class.
U.S. Outflows Tilt Global Balance
According to CoinShares, total weekly outflows reached $454 million after an initially strong start to the year.
In the first two trading days of 2026, crypto funds recorded $1.5 billion in inflows, but those gains were largely erased by $1.3 billion in outflows over the following four days.
The reversal underscores how quickly sentiment shifted in response to macroeconomic data and interest rate expectations.
Regionally, the United States accounted for the bulk of the selling, with $569 million in outflows. Those withdrawals alone pushed global flows into negative territory.
Outside the U.S., investor behavior was more resilient.
Germany posted inflows of $58.9 million, Canada recorded $24.5 million, and Switzerland saw $21 million enter crypto investment products.
The regional disparity suggests U.S. investors reacted more sharply to domestic economic signals.
International markets, however, maintained a steadier outlook, possibly supported by different regulatory conditions.
Overall, last week’s flows reflect a market recalibrating expectations rather than abandoning crypto altogether, with capital selectively repositioning across regions and tokens.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
