Crypto exchange-traded products (ETPs) suffered their largest weekly sell-off on record, with investors pulling approximately $2.9 billion from these funds, according to a report by CoinShares published on Monday.

The massive outflows mark a significant shift in sentiment after a prolonged period of steady investment into digital asset products.

This latest wave of withdrawals extended a three-week streak of outflows, now totaling $3.8 billion. CoinShares research analyst James Butterfill pointed to several factors likely driving the sell-off, including mounting investor concerns following the recent $1.5 billion hack on crypto exchange Bybit and the Federal Reserve’s increasingly hawkish stance on monetary policy.

Before this downturn, crypto investment products had enjoyed 19 consecutive weeks of inflows, suggesting that some investors were locking in profits amid growing market uncertainty.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, bore the brunt of the outflows, losing $2.6 billion over the past week. Meanwhile, funds that bet against bitcoin, known as short Bitcoin ETPs, saw only a modest inflow of $2.3 million, indicating that bearish sentiment has yet to fully take hold.

While most assets struggled, a few bucked the trend—Sui (SUI) emerged as the top performer with $15.5 million in inflows, followed by XRP (XRP), which also attracted fresh investment.

Spot Bitcoin ETFs faced one of their toughest weeks yet, with investors pulling significant capital from these funds. BlackRock’s iShares Bitcoin Trust (IBIT), the largest of its kind, recorded a staggering $1.3 billion in outflows, according to CoinShares, the highest weekly withdrawal since its launch.

Similarly, CME Bitcoin futures open interest dropped sharply over the past two weeks, falling from 170,000 BTC to 140,000 BTC, signaling a potential shift in institutional positioning. At the same time, the three-month futures annualized rolling basis is yielding 7%, only slightly higher than the 4% yield offered by short-term U.S. Treasuries, making the trade less attractive for investors.

“This tells me the hedge funds are starting to unwind their basis trade position, which is a net neutral position,” said James Van Straten, analyst at CoinDesk. “With a narrowing spread between futures yields and risk-free returns, traders may be reallocating capital away from bitcoin derivatives in favor of safer, more liquid assets.”

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