Cryptocurrency investment products faced a $454 million outflow amid changing expectations from the Federal Reserve regarding interest rates.
Between January 2 and 10, cryptocurrency investment products saw significant withdrawals totaling $454 million, as reported by CoinShares.
This trend continued throughout the week, culminating in total outflows of $1.3 billion, nearly counterbalancing an earlier inflow of $1.5 billion observed at the start of 2026.
The shift in investment sentiment is largely attributed to evolving expectations regarding the Federal Reserve's monetary policy. Investors now anticipate that the Fed will maintain interest rates rather than implement cuts, which is contributing to the cautious market atmosphere.
The next Federal Reserve meeting is set for January 28.
The majority of the selling pressure originated from the United States, which reported outflows of $569 million. In contrast, Germany experienced inflows of $58.9 million, with Canada and Switzerland also seeing positive movement of $24.5 million and $21 million, respectively.
Bitcoin-related funds suffered losses of $405 million, while short positions on Bitcoin faced declines of $9.2 million. Analysts indicate that this scenario presents mixed signals about market sentiment towards Bitcoin.
Ethereum investment products recorded outflows of $116 million, and multi-ETPs saw withdrawals of $20.8 million.
On a positive note, funds focused on XRP and Solana attracted inflows of $45.8 million and $32.8 million, respectively, last week.
For context, cryptocurrency exchange-traded products had total inflows of $47.2 billion in 2025, slightly below the record $48.7 billion noted the year before.
