Cryptocurrency investment products lost $454 million last week as investors abandoned bets on near-term Federal Reserve rate cuts.
The four-day outflow streak nearly erased $1.5 billion in inflows from the first two trading days of 2026.
Bitcoin-focused products accounted for $405 million of last week's withdrawals.
What Happened
CoinShares data released Monday showed Bitcoin exchange-traded products losing $405 million, while Ethereum funds shed $116 million.
The reversals followed stronger-than-expected U.S. economic data showing resilient services activity and persistent labor strength.
CME FedWatch probabilities for a March rate cut dropped from around 45-52% to just 5%, dampening appetite for risk assets.
Select altcoins bucked the trend.
XRP, Solana (SOL) and SUI funds attracted $46 million, $33 million and $8 million respectively.
Short-Bitcoin (BTC) products saw minor $9 million outflows, suggesting mixed directional sentiment.
Why It Matters
U.S. funds dominated outflows with $569 million in withdrawals, while Germany, Canada and Switzerland posted $59 million, $25 million and $21 million in inflows.
Fidelity and Grayscale drove U.S. redemptions with $454 million and $360 million respectively.
BlackRock's iShares and ProFunds Group absorbed $181 million and $180 million in fresh capital.
Total crypto ETP assets under management held steady at $181.9 billion despite the turbulence.
Month-to-date flows remained positive at $229 million.
The divergence shows macro sensitivity replacing narrative-driven allocation in institutional crypto markets.
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