Record Outflows from ETFs
By Joshua de Vos, Kevin Tam|Edited by Sarah Morton Jul 9, 2026, 10:40 a.m. 5 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowYou’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that breaks down digital assets for financial advisors. Subscribe here to receive it every Thursday.
In this week’s edition, Joshua de Vos from CoinDesk Research reviews the performance of Q2 2026, highlighting the shift of institutional funds away from digital assets towards equities driven by AI.
In the “Ask an Expert” segment, Kevin Tam addresses inquiries regarding Asian market adoption trends, income strategies for bitcoin ETFs, and the implications of US retirement capital inflows.
July – Q2 2026 Digital Asset Overview
Digital assets concluded Q2 2026 under significant pressure, extending their decline for the third straight quarter, marking the longest downturn since the 2022 bear market. According to CoinDesk’s latest Quarterly Review and Outlook, this quarter was characterized by a notable shift of institutional capital towards AI-focused equities, ongoing geopolitical instability, and unprecedented outflows from spot crypto ETF products.
ETF Flows: The Central Narrative
The dynamics of the quarter were starkly illustrated by bitcoin spot ETFs. Following April’s $2.02 billion in net inflows, there was a sharp reversal as May saw outflows of $2.41 billion, followed by $4.29 billion in June, culminating in Q2 net redemptions of $4.67 billion—the largest quarterly outflow since the introduction of spot products in January 2024. Notably, June recorded a peak in redemptions. Ethereum ETFs similarly experienced $690 million in net outflows. This trend indicates institutional profit-taking and a shift of capital to traditional markets, rather than a fundamental withdrawal from digital assets. Observers will be keenly watching for a rebound to positive net flows in Q3 as a key indicator of market sentiment.