Crypto ETF outflows and market reaction to rising yields: Digital asset investment products recorded $1.47 billion in outflows last week, marking the second consecutive week of redemptions. Cumulative outflows over the two weeks reached $2.54 billion. Bitcoin-focused exchange-traded funds accounted for the majority of the weekly withdrawals, with $1.26 billion withdrawn, while funds tracking Ether experienced $223 million in outflows, underscoring concentrated selling pressure in spot crypto ETFs during the period.
Bitcoin and Ethereum ETFs experienced significant outflows, with Bitcoin ETFs witnessing $1.315 billion last week, marking the largest weekly outflow of 2026. Ethereum ETFs saw $223 million in outflows during the same period. Over the past two weeks, cumulative outflows totaled $2.54 billion, with U.S.-listed spot Bitcoin ETFs alone accounting for more than $2.26 billion of this amount.
In detailed figures, Bitcoin ETFs led losses with $105.2 million and Ethereum ETFs with $6.7 million. Meanwhile, Bitcoin’s price hovered around $77,300 and Ethereum near $2,128.
Notably, Hyperliquid ETFs registered net buying for eight consecutive days, contributing to gains in the Hyperliquid token HYPE, which reached an all-time high of $64.21, a sign of ongoing market interest despite the broader outflows.
James Butterfill, head of research at CoinShares, highlighted geopolitical tensions as contributing factors, mentioning that cumulative outflows over the two weeks now stand at US$2.54bn, suggesting the Iran-related risk-off has deepened and broadened despite continued CLARITY Act progress. Another factor influencing investor behavior is the price drop of Bitcoin, with Sun noting, “Bitcoin’s price has actually dropped below the average purchase price of the ETFs, triggering a certain degree of selling pressure.”
Additionally, the upward movement of the U.S. Treasury yield curve has been a suppressive factor, as it “has suppressed the appetite for arbitrage capital.” This sentiment is echoed in the market’s current focus, where “the market is primarily buying downside protection and reducing risk exposure, rather than making large-scale bets on a one-way crash or a rapid rebound.”
Regulatory issues also play a significant role, as traditional exchanges argued the recent regulatory signals could “create complications around dividend administration, shareholder voting, and investor protection,” leading to the SEC’s cautious stance. Meanwhile, the tokenization sector proceeds with a two-track approach, with issuer-backed tokenization advancing while third-party methods navigate “legal gray territory.”
Hyperliquid’s token HYPE reached an all-time high of $64.21 on Sunday and was trading around $61.25 at the time of reporting. The token’s year-to-date gains were described as approximately 140%, with a specific comparison showing HYPE up 101% year-to-date versus Bitcoin’s -12% year-to-date.
The Hyperliquid ETF complex posted net buying for eight consecutive days, adding $10.95 million on Monday. Bitwise’s fund BHYP allocated 10% of its management fees to the purchase of HYPE on its corporate balance sheet. Hyperliquid reported generating $255 million year-to-date, with 97% of that amount flowing back to token holders through automated market purchases.
Outflows from Bitcoin and Ethereum ETFs continued amid market risk-off sentiment and regulatory challenges, with cumulative outflows over the past two weeks reported at US$2.54 billion. Some funds showed positive performance: Hyperliquid ETFs posted eight straight days of net buying, and the Hyperliquid token HYPE reached an all-time high near $64.21 and was trading around $61.25.
