Massive Crypto Fund Outflows: $1.73 Billion Vanishes in a Week
By John Nada·Jan 27, 2026·2 min read
Digital asset funds saw $1.73 billion in outflows, the largest since November 2025, largely driven by macroeconomic pressures and falling crypto prices.
Digital asset funds experienced a staggering $1.73 billion in outflows, marking the largest withdrawal since mid-November 2025, according to Decrypt. U.S. products accounted for nearly all of this drop, while Europe and Canada saw selective inflows. Analysts have pointed to macroeconomic pressures and falling prices as the key drivers behind this trend.
Bitcoin investment products led the declines, with $1.09 billion exiting during the week, while Ethereum funds saw $630 million in outflows. In contrast, Solana-linked products recorded inflows of $17.1 million. The total assets under management across digital asset investment products stood at $178 billion.
The scale of these outflows reflects a combination of macroeconomic pressures and market-specific weakness. CoinShares reported dwindling expectations for interest rate cuts and negative price momentum as significant factors. Disappointment that digital assets have yet to benefit from the so-called debasement trade also contributed to the pullback. The broader crypto market continues to feel the strain, with Bitcoin trading at around $87,620, down 5.5% over the past week, and Ethereum falling 9.5% to about $2,900.
More than $720 million in liquidations occurred over the past 24 hours, with $465 million coming from long positions. This downturn is largely viewed as macro-driven rather than a reflection of weakening crypto usage, according to industry executives. "Entering February with bearish sentiment wouldn’t be surprising, but I expect less aggressiveness," said Maksym Sakharov, co-founder and group chief executive of WeFi.
Outflows were heavily concentrated in the United States, which accounted for nearly $1.8 billion of the total. However, sentiment varied by region; Sweden and the Netherlands recorded smaller outflows of $11.1 million and $4.4 million, respectively. Investors in Switzerland, Germany, and Canada took advantage of recent price weakness, leading to inflows of $32.5 million, $19.1 million, and $33.5 million, respectively.
In addition to Bitcoin and Ethereum, XRP-linked products saw $18.2 million in withdrawals. Some smaller products, including those linked to Binance and Chainlink, recorded minor inflows. This mixed sentiment highlights the varying strategies investors are adopting in the current market environment.
As the crypto landscape continues to evolve, the recent outflows indicate that investor sentiment remains fragile. The macroeconomic backdrop is playing a significant role, with many waiting for clearer signals before making major moves. The current market dynamics suggest that while some investors are pulling back, others are seizing opportunities amidst the price declines. This dichotomy could shape the market's trajectory in the coming weeks.