Crypto Funds Lose $454 Million Amid Mixed Signals from the Fed

In Crypto Regulations
January 12, 2026

Crypto Funds Lose $454 Million Amid Mixed Signals from the Fed

Between December 2 and 10, cryptocurrency investment products experienced an outflow of $454 million, according to a report by CoinShares.

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Weekly inflow dynamics in crypto funds. Source: CoinShares.

Negative trends were observed for most of the week. The outflow reached $1.3 billion, nearly offsetting the $1.5 billion inflow seen in the early days of 2026.

The shift in expectations regarding the actions of the Fed was the cause. The market is convinced that the regulator will refrain from lowering rates and will maintain the current levels.

The meeting is scheduled for January 28.

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Source: Investing.com.

The main wave of sales occurred in the US, with an outflow of $569 million. Germany led with an inflow of $58.9 million. Canada and Switzerland accounted for $24.5 million and $21 million, respectively.

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Weekly capital distribution by region. Source: CoinShares.

Bitcoin funds lost $405 million. Meanwhile, short structures based on the first cryptocurrency lost $9.2 million. According to experts, the situation sends mixed signals about the overall market sentiment towards digital gold.

Ethereum products saw an outflow of $116 million, while multi-ETP lost $20.8 million.

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Weekly capital distribution by assets. Source: CoinShares.

Funds based on XRP and Solana continue to attract capital. Last week, they received $45.8 million and $32.8 million, respectively.

At the end of 2025, the total inflow into cryptocurrency exchange-traded products amounted to $47.2 billion. This figure slightly lagged behind the record $48.7 billion recorded the previous year.

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Steven M. Crimmins is a cryptocurrency strategist and freelance writer who has followed the blockchain industry since Bitcoin’s early days. Known for his sharp analysis of altcoins and trading strategies, Steven provides Satoshi News Africa readers with market-focused content grounded in research. He is especially interested in how African traders are adopting crypto as an alternative to traditional markets. Steven is also a podcast host, where he discusses emerging technologies and investment trends.