Crypto’s $1.7B Exit: Is Your Bitcoin Crying Too?

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Well, butter my biscuit and call me Liz Lemon, because the crypto world just had a worse week than Jenna Maroney at a karaoke bar. According to CoinShares’ latest report (dated Feb. 2, because even bad news needs a timestamp), crypto investment products saw $1.7 billion in outflows last week. That’s right, $1.7 billion. Or as I like to call it, “the cost of one of Tracy Jordan’s spontaneous yacht purchases.”

Apparently, assets under management (AUM) for these products have plummeted by $73 billion since their peak in October 2025. That’s more dramatic than a season finale of 30 Rock. And guess where most of these outflows happened? The good ol’ U.S. of A., with $1.65 billion fleeing faster than Kenneth running from a vegan buffet.

Bitcoin ETFs: The Party’s Over, Folks

Bitcoin, the cool kid of crypto, saw its ETFs lose $1.48 billion last week. That’s like showing up to a party and realizing everyone left with your snack stash. At the time of writing, Bitcoin is trading below the average cost basis of U.S. spot ETFs, which is basically the financial equivalent of tripping on the red carpet. Ouch.

Here’s the kicker: U.S. Bitcoin ETF products hold around 1.28 million BTC, totaling about $113 billion in AUM. That’s an average buying price of $87,830 per Bitcoin. Current price? Well, let’s just say it’s not winning any awards. Thanks, sharp selloff, for being the uninvited guest to this party.

Altcoins: The Sidekicks in This Tragedy

Ethereum, XRP, and Solana are like the supporting cast in a sitcom that’s been canceled mid-season. Ethereum products lost $308 million, XRP shed $43.7 million, and Solana said goodbye to $31.7 million. Even the crypto market cap shrank by $400 billion last week. That’s more shrinkage than Jack Donaghy’s fear of commitment.

But hey, there’s a silver lining! Short Bitcoin products saw $14.5 million in inflows. Because when the ship is sinking, someone’s got to sell the lifeboats, right?

Meanwhile, the Crypto Fear and Greed Index is in “extreme fear” territory. Or as I like to call it, “Monday morning at a network TV studio.”

Raoul Pal, the CEO of Global Macro Investor, says this selloff is due to a liquidity shortage, not a structural issue. Basically, it’s like when you forget to pay your cable bill, but instead of losing Bravo, you lose billions. Temporary, sure, but still embarrassing.

– Raoul Pal (@RaoulGMI) February 1, 2026

And let’s not forget the new Fed chair, Kevin Warsh, who’s apparently more hawkish than a pigeon in a park. Fewer interest rate cuts? Great. Just what the crypto market needed-more uncertainty. Pass the wine, Kenneth.

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2026-02-02 18:06