US Bitcoin and Ethereum spot ETFs are seeing sustained outflows as investors rotate capital into international stocks. Both crypto ETFs have seen just two weeks of positive inflows so far in 2026.
The move comes amid rising Treasury yields, a resilient U.S. labor market and record inflows into global stock funds outside the United States.
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Money is moving into international ETF markets
In recent weeks, US spot Bitcoin ETFs have moved into clear net outflow territory. Total assets have fallen sharply from recent highs near $115 billion to about $83 billion.
Ethereum ETFs show an even sharper contraction, with assets falling from around $18 billion to around $11 billion.
This is not random volatility. It reflects the capital leaving the asset class.
At the same time, international equity ETFs recorded their largest capital inflows in years.
January saw record allocations to ex-US global funds, absorbing about a third of total ETF inflows despite representing a much smaller proportion of total assets.
That indicates a significant rotation.
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Institutional investors appear to be trimming their exposure to crowded US growth trades – including cryptocurrencies – and reallocating to cheaper overseas markets amid improving macroeconomic conditions abroad.
Meanwhile, stronger U.S. jobs data sent Treasury yields higher. Higher yields tighten financial conditions and increase the attractiveness of bonds relative to risk assets.
Bitcoin and Ethereum, which trade as high-beta liquidity plays, tend to weaken when capital moves into safer or yield-generating assets.
The combination creates a structural headwind.
Crypto ETFs were a major source of demand in 2024, amplifying bullish price movements through sustained inflows.
Now that mechanism is being reversed. Instead of reinforcing rallies, ETFs are acting as distribution channels.
This does not invalidate the long-term crypto thesis. However, it weakens the short-term liquidity environment.
Until capital turnover slows or macroeconomic conditions improve, ETF outflows may continue to weigh on Bitcoin, Ethereum, and the broader crypto market.
