Price Weakness Drives $403M Outflow From US Crypto Funds

Edgen Crypto

·Feb 16 2026, 16:40

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Key Takeaways

A recent CoinShares report reveals a significant divergence in global crypto investment flows. U.S.-based funds experienced substantial withdrawals driven by recent price weakness, while other regions showed continued confidence, highlighting a fractured market sentiment among institutional investors.

U.S. crypto funds recorded outflows totaling $403 million.
European and Canadian funds bucked the trend, attracting net inflows and signaling regional resilience.
The regional split suggests waning American institutional confidence and could introduce increased market volatility.

US Funds Shed $403M as Price Weakness Takes Hold

U.S.-based digital asset investment funds saw outflows of $403 million, according to a recent report from CoinShares. This substantial withdrawal reflects a bearish turn among American institutional investors reacting to a period of declining cryptocurrency prices. The outflow suggests a combination of profit-taking and a broader loss of confidence, potentially increasing downward pressure on the market as significant capital exits U.S.-domiciled products.

Regional Divergence Signals Fractured Global Sentiment

In stark contrast to the U.S., investment funds in Europe and Canada registered net inflows. This geographical divergence highlights a split in global market sentiment. While American investors are reducing their exposure, their European and Canadian counterparts appear to be using the price weakness as a buying opportunity. This conflicting behavior could lead to regional price disparities and heightened volatility as different investor bases pursue opposing strategies.