Crypto outflows reached $1.7 billion in the week ended February 6, flipping year-to-date flows to a net outflow of $1 billion and signaling trouble days before bitcoin fell below $70,000 for the first time since October 2024, according to recent insight from CoinShares.
The exodus from digital asset investment products marked a turning point in sentiment. While bitcoin wouldn’t break below the $70,000 threshold until Thursday, the fund flow data captured investors heading for the exits well before the broader market collapse.
The outflows represented a warning sign that investors had lost conviction in crypto assets amid shifting Federal Reserve leadership and continued selling from large holders, with total assets under management falling $73 billion since peaks in October 2025, according to CoinShares.
U.S. investors led the retreat with $1.65 billion in outflows, according to the report. Canada and Sweden also saw redemptions of $37.3 million and $18.9 million respectively, while Switzerland and Germany posted modest inflows.
Investors Head for the Exit
Bitcoin products absorbed the bulk of the damage with $1.32 billion in outflows, according to CoinShares. Ethereum products saw $308 million exit, while recent market favorites including Solana and XRP recorded outflows of $31.7 million and $43.7 million respectively.
Two exceptions stood out in the data. Short bitcoin products attracted $14.5 million in inflows, reflecting bearish positioning, according to the report. Products tracking tokenized precious metals pulled in $15.5 million as investors sought alternative stores of value.
By the time bitcoin broke through $70,000 Thursday, with CoinMarketCap data showing the token falling as low as $60,074, the structural cracks had already formed. Bitcoin has now erased all gains since President Donald Trump’s election sparked a speculative rally in late 2024, Bloomberg points out.
The selloff has created a self-reinforcing cycle. Exchange-traded funds have seen roughly $2 billion in redemptions over the past month alone, according to Bloomberg data. Fund managers liquidating positions to meet those redemptions have accelerated the downward pressure on prices.
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