Crypto funds log sharpest weekly exits since February amid macro jitters: CoinShares

2 hours ago7 min read1 comments

The crypto market is experiencing a classic flight to quality, with the latest data from CoinShares revealing a seismic $2 billion hemorrhage from crypto exchange-traded products—the most significant weekly exodus since February. This isn't some minor correction; it's a full-blown liquidation event driven by macroeconomic jitters and the kind of policy uncertainty that makes weak hands fold.Let's be perfectly clear: when the Federal Reserve waffles on interest rates and politicians in Washington and Brussels threaten with heavy-handed regulation, it's the speculative altcoin casino that gets crushed first. This is precisely what separates the foundational asset, Bitcoin, from the thousands of imitators clogging the ecosystem.Look at the historical precedent; during the 2018 bear market and the 2022 liquidity crunch, we saw identical patterns. Capital didn't vanish; it consolidated.It moved out of risky, over-leveraged positions in meme coins and complex DeFi protocols and sought the safety of the original cryptocurrency. Veteran traders will tell you this is a necessary cleansing.Analysts from firms like Galaxy Digital have long warned that the market's froth was unsustainable, built on a foundation of cheap debt and regulatory permissiveness. That era is ending.The real consequence here isn't just a red number on a chart; it's a market-wide repricing of risk. Institutional players, the very ones who piled into these ETPs, are now the first to head for the exits, proving that their commitment is as fickle as the regulators they claim to distrust.This outflow is a stark reminder that in the battle for financial sovereignty, there are no free rides. While the talking heads on CNBC will paint this as a catastrophe for the entire digital asset class, those of us with conviction see it for what it is: a painful but essential shakeout that strengthens Bitcoin's long-term dominance by incinerating the dead weight.The noise is receding, and the signal is getting stronger. The path to a Bitcoin-standard future was never promised to be smooth, and this latest tremor is just another test of resolve on that journey.

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#crypto funds

#outflows

#exchange traded products

#policy uncertainty

#sentiment

#macro jitters

#CoinShares