Crypto funds suffer $1.7B weekly outflow as ETF flows flip negative

Digital asset investment products recorded a $1.7 billion weekly outflow, erasing year-to-date inflows and flipping ETF investments for the year into negative territory, with U.S.-listed crypto funds leading withdrawals ^[1][4]. Other industry tallies showed a similar trend, reporting roughly $1.8 billion of exits in January as crypto ETFs ended the month in retreat ^[3].

Market data indicate several bitcoin ETFs are trading below their reported cost basis and that the share of bitcoin held at a profit has fallen to cycle lows, signaling diminished profitable supply among holders ^[2][1]. The crypto.news report also noted some ETF products were positioned short of bitcoin, underscoring pressure on fund-level performance ^[1].

Despite broad outflows from crypto funds, the sector saw pockets of demand: tokenized metals products attracted fresh inflows during the same period, according to fund flow data ^[1].

Fund-flow metrics and ETF cost-basis dynamics together point to a stressed investment backdrop for bitcoin products as the year begins, with market participants watching subsequent flows and ETF pricing for signs of stabilization ^[1][2][4].