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

Source: CryptoNewsNet Original Title: Crypto funds bleed $454M in outflows as Fed rate-cut hopes fade Original Link: 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.

Bitcoin leads the negative sentiment with $405 million outflows

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.

US the only market to bear major losses

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.

By the end of last week, crypto ETP issuers held $181.9 billion in assets under management, slightly up from $181.3 billion the previous week.

BlackRock’s iShares products and Profunds Group led inflows with $181 million and $180 million, respectively, while Fidelity Investments and Grayscale Investments drove outflows, posting $454 million and $360 million, respectively.