There has been a remarkable outflow in spot Bitcoin and Ethereum exchange traded funds (ETF) in the USA recently. It appears that there will be only two weeks of net inflow to these funds throughout 2026. While it is observed that investors are shifting their capital to international stock markets, fundamental macroeconomic developments are also strengthening this trend.
Assets Decline in Crypto ETFs
In recent weeks, total assets in Bitcoin ETFs have fallen to approximately $83 billion after reaching as high as $115 billion. A sharper decline is clearly felt in Ethereum ETFs; The asset volume here decreased from 18 billion dollars to around 11 billion dollars. These movements in funds reveal that interest in the crypto asset class is waning and a significant amount of capital is exiting.
Strong Entries into International Markets
In line with this change in fund flows, international equity ETFs saw their highest inflows in recent years. Specifically, in January, new capital allocated to non-US global funds accounted for one-third of total ETF inflows. This rate is quite high compared to the share of these funds in total assets.
It is emphasized by market observers that large investors are reducing their weight in US-based growth-themed stocks and risky assets such as crypto and directing capital to foreign markets with attractive valuations.
In this environment, strong employment figures announced in the USA led to an increase in bond interest rates. Higher-yielding bonds highlight alternative investment options that are considered to have relatively lower risk.
Crypto assets such as Bitcoin and Ethereum, which have high beta and are traded in liquid markets, may tend to weaken when capital shifts to safe or yield-generating assets.
Crypto ETFs created serious demand in 2024 and stood out as a mechanism that accelerated price increases. Today, this picture has been reversed. Instead of triggering a price rally, funds now seem to have turned into distribution channels for the sale.
In this environment where macroeconomic conditions are tightening and capital rotation is accelerating, it is evaluated that ETF outflows may put pressure on Bitcoin, Ethereum and the general crypto market in the short term.
