Crypto investment products experienced a cooling trend in selling pressure, with fresh outflows totaling $187 million, according to a CoinShares report on Monday. This marks the third consecutive week of outflows, although the pace of selling has significantly decreased compared to the $3.43 billion seen in the previous two weeks.
The slowdown in outflows coincides with a period of stabilization in digital asset prices following a sharp downturn that saw Bitcoin (BTC) fall to its lowest level since November 2024, briefly touching $60,000 on Coinbase last Thursday. James Butterfill, CoinShares' head of research, noted that while flows typically align with crypto prices, changes in the pace of outflows have historically been more informative, often signaling potential shifts in investor sentiment. He suggested that the recent slowdown could indicate that a "potential market nadir may have been reached" for ETPs, implying a possible bottom.
Bitcoin investment products experienced the most significant losses, with outflows totaling $264.4 million. Spot Bitcoin ETFs accounted for a large portion of these outflows, amounting to $318 million. Interestingly, XRP funds led inflows, attracting $63 million, while other altcoin ETPs, such as those tracking Ether (ETH) and Solana (SOL), posted modest gains of $5.3 million and $8.2 million, respectively. This suggests a potential rotation from Bitcoin to altcoins.
Despite the easing of outflows, trading activity in crypto ETPs reached a record high last week. ETP volumes hit $63.1 billion, surpassing the previous high of $56.4 billion set in October of last year. This surge in trading volume suggests continued investor engagement, even amidst the outflows.
The recent market correction has impacted overall assets under management (AUM) in digital asset investment products, which declined to $129 billion, the lowest level since March 2025. Within this, Bitcoin ETPs held $102.7 billion in AUM, while ETF AUM fell below $90 billion. Since the start of the year, crypto ETPs have seen a total outflow of $1.2 billion, compared to $1.9 billion in outflows from Bitcoin ETFs. As of January 30, 2026, U.S. Bitcoin ETFs have gathered a combined $54 billion in net inflows, down 12.4% from their peak in early October 2025. The past two weeks have been among the worst in Bitcoin ETF history, with combined outflows of $2.8 billion.
The market's reaction to these trends is mixed. Some analysts suggest that Bitcoin's recent decline has pushed its valuation to "fire-sale" levels. Others point to the resilience of ETF holders, noting that despite Bitcoin being down nearly 40% from its all-time high, cumulative inflows remain substantial. The average ETF cost basis was breached in late January, a level not seen since the summer of 2024, which some expect to act as near-term support.
In other news, major crypto fund issuer 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) for an ETF tracking Ondo (ONDO). Overall, while outflows persist, the cooling selling pressure and record trading volumes suggest a market in search of stability and direction. The performance of altcoins like XRP, Ether, and Solana, coupled with the continued evolution of the ETP landscape, indicate a dynamic and evolving crypto investment environment.