Digital Asset ETPs See $2 Billion Outflows Amid Policy Uncertainty

Quick Breakdown 

• $2B outflows hit digital asset ETPs last week, led by Bitcoin ($1.38B) and Ethereum ($689M).
• U.S. investors drove 97% of outflows, while Germany saw $13.2M inflows.
• Investors shifted toward multi-asset ETPs (+$69M) and short Bitcoin positions (+$18.1M) amid policy uncertainty.

 

Digital asset exchange-traded products (ETPs) experienced their largest weekly outflows since February, with a total of US$2 billion withdrawn last week. Analysts attribute the decline to ongoing monetary policy uncertainty in the U.S. and increased selling from crypto-native whale accounts.

Digital asset ETPs saw US$2bn in outflows last week, driven by monetary policy uncertainty and crypto-native whale selling. Bitcoin and Ethereum led the losses with outflows of US$1.38bn and US$689m, while investors shifted toward multi-asset ETPs (+US$69m) and increased…

— Wu Blockchain (@WuBlockchain) November 17, 2025

US investors drive the largest weekly exodus since February

The outflows mark the third consecutive week of withdrawals, bringing the three-week total to US$3.2 billion and causing total assets under management (AuM) in digital asset ETPs to drop from US$264 billion in early October to US$191 billion—a 27% decline.

The U.S. accounted for the vast majority of withdrawals, totalling US$1.97 billion, or 97% of the week’s outflows. Switzerland and Hong Kong followed with smaller outflows of US$39.9 million and US$12.3 million, respectively. German investors bucked the trend, seeing the market weakness as a buying opportunity, with inflows totalling US$13.2 million.

Bitcoin and Ethereum lead losses; investors shift strategies

Bitcoin took the biggest hit, with US$1.38 billion in outflows over the week—about 2% of its total assets under management. Ethereum also saw heavy withdrawals, losing US$689 million, or roughly 4% of its AuM. Most altcoins experienced only minor movements, with Solana and XRP posting outflows of US$8.3 million and US$15.5 million, respectively.

Amid the broader sell-off, some investors shifted toward diversified exposure, putting US$69 million into multi-asset ETPs over the past three weeks. Short Bitcoin ETPs also drew US$18.1 million in inflows during that time, suggesting more investors are turning to hedging strategies in response to market volatility.

The recent wave of outflows highlights the sensitivity of crypto ETPs to policy shifts and large investor movements. It also highlights the ongoing volatility in digital asset markets as both institutions and retail investors react to regulatory and macroeconomic pressures.

Interestingly, digital asset investment products also recorded their strongest weekly performance on record, attracting US$5.95 billion in inflows in response to weak U.S. employment data and renewed macroeconomic uncertainty.