Crypto Funds Experience Continued Outflows Amid Market Weakness
By John Nada·Feb 16, 2026·4 min read
Crypto investment products logged $173 million in outflows, marking the fourth week of negative sentiment and highlighting market challenges.
Crypto investment products faced significant outflows for the fourth consecutive week, totaling $173 million, as market sentiment remained negative. This follows the previous week's outflows of $187 million, according to a CoinShares update. Over the past four weeks, total outflows have now reached approximately $3.8 billion, with total assets under management (AUM) declining to around $133 billion, the lowest level since April 2025.
James Butterfill, CoinShares' head of research, noted that the outflows were driven by broad market negativity and persistent price weakness. The cryptocurrency market has been particularly volatile, with Bitcoin (BTC) beginning the week at $70,000 but falling to a low of $65,000 on Thursday, according to Coinbase data. This decline in Bitcoin's price not only affected investor confidence but also led to a broader sell-off across the market, indicating that traders remain wary of potential further downturns.
Bitcoin ETPs were particularly responsible for the negative trend, recording $133.3 million in outflows, leading to an AUM of about $106 billion. The Bitcoin ETP market has experienced a dramatic shift as institutional investors reevaluate their positions amidst ongoing market turbulence. The heavy outflows from Bitcoin ETPs underscore the challenges faced by these products in maintaining appeal amid declining prices.
In a stark contrast, XRP and Solana ETPs saw inflows of $33.4 million and $31 million, respectively, defying the overall trend. This divergence in performance highlights the selective nature of investor sentiment, as certain cryptocurrencies manage to attract capital even in a bearish environment. The inflows into XRP and Solana may suggest that investors are seeking opportunities in altcoins that exhibit relative strength or potential for recovery, showcasing a more nuanced approach to crypto investment.
Meanwhile, US spot Bitcoin exchange-traded funds (ETFs) faced even greater outflows, nearing $360 million last week, as reported by SoSoValue. This substantial outflow from US ETFs reflects the heightened caution among US investors, who appear to be more sensitive to market fluctuations compared to their international counterparts. The contrast between US and international trends raises questions about the underlying factors driving investment decisions across different regions.
Ether (ETH) funds also experienced outflows, amounting to $85 million, although US spot Ether ETFs managed to secure modest inflows of $10 million. This mixed performance indicates that while overall sentiment towards Ethereum remains cautious, some investors are still willing to bet on its potential, particularly in the context of ongoing developments in the decentralized finance (DeFi) space and other use cases for Ether.
The divergence in sentiment between the US and other regions was notable. US crypto investment products experienced more than $403 million in outflows, while other regions recorded inflows totaling $230 million. This significant disparity emphasizes the challenges faced by US investors in a market characterized by regulatory uncertainties and fluctuating prices. Germany, Canada, and Switzerland were the top performers, with respective inflows of $115 million, $46 million, and $37 million. These countries' ability to attract investment highlights a potential shift in market dynamics, where investors may be seeking refuge in more stable or promising markets outside the US.
Compounding the challenges for the crypto market, Standard Chartered analysts downgraded their 2026 Bitcoin price target from $150,000 to $100,000, predicting further volatility that could see Bitcoin drop to $50,000 before any recovery. This downward adjustment from a major financial institution underscores the pervasive caution among investors and market participants as they navigate this turbulent environment. Such predictions could further influence investor behavior, as they weigh the risks and potential rewards of entering or exiting positions.
The ongoing outflows and market adjustments suggest a cautious approach from institutional investors. The significant declines in AUM highlight the pressure on crypto investment products to reverse sentiment and attract capital. As institutional confidence wavers amidst regulatory scrutiny and market fluctuations, the ability of these products to recover will be a key indicator of the market's health moving forward.
With global capital flows reflecting a complex landscape, particularly in light of the sharp contrast between US and international investor behavior, the crypto market's trajectory remains precarious. Investors may need to reassess their strategies in response to these shifts, as the implications of macroeconomic factors and regulatory developments continue to unfold. Understanding these dynamics will be crucial for stakeholders looking to navigate the evolving financial landscape effectively. As the market grapples with these challenges, the response from both retail and institutional investors will be pivotal in shaping the future of cryptocurrency investments.
The landscape remains uncertain, and as the market continues to adjust to these pressures, the long-term implications for the crypto sector will become clearer. Investors must remain vigilant and adaptable as they seek to understand the intricacies of this rapidly changing market environment.