Crypto ETFs See Record Outflows in Q2 2026

Digital asset investment products experienced record outflows totaling $2.5 billion in the second quarter of 2026, according to a report by CoinShares. This marks a significant shift from the strong inflows seen in the first quarter, which reached $4.7 billion. The outflows were primarily driven by a substantial withdrawal of $2 billion from Bitcoin-focused exchange-traded funds (ETFs), with a further $300 million exiting Ethereum ETFs.

The report attributes the reversal in investor sentiment to a combination of factors, including rising interest rates and a perceived lack of new catalysts for significant price appreciation in the crypto market. While institutional investors have been net sellers, CoinShares noted that retail investors have largely remained on the sidelines, suggesting a cautious approach to the digital asset class. The outflows represent approximately 0.6% of the total assets under management (AUM) for crypto investment products.

Despite the recent outflows, the overall AUM for digital asset investment products remains robust at $41 billion, a figure that has grown substantially since the beginning of 2026. The report also highlighted a modest inflow of $100 million into multi-asset products, indicating a continued interest in diversified digital asset exposure. However, the dominant narrative for Q2 2026 is the significant deleveraging occurring across the crypto investment landscape, particularly within the spot Bitcoin ETF market.