Some Europeans See ETF Opportunity in Crypto's Slump as US Investors Pull Back

Bitcoin briefly sank below prices some investors regard as key 'technical levels' early in the week, triggering liquidations across derivatives markets and prompting a wave of short-term de-risking. The cryptocurrency fell to around $60,000 before recovering part of the losses and hovering near $70,000 during the US session on 9 Feb. 

Data from CoinShares show global digital asset investment products recorded $187mn in net outflows for the week ending 6 Feb – a relatively modest figure compared with the heavier liquidations seen earlier in the sell-off. Beneath the headline number, flows diverged sharply by region. European nations were among those that produced net inflows while the US withdrew.

German, Swiss net buyers

Germany led buying activity over the week, with investors adding exposure despite the market pullback. Switzerland also recorded $30mn in inflows, lifting its year-to-date total to $136mn, according to the data.  

Outside Europe, Canada, Brazil and Hong Kong also posted net inflows, helping to offset part of the selling pressure from the US. Sweden, by contrast, continued to see outflows, with $136mn withdrawn last week. 

The US remained the clear source of net selling, with more than $200mn of withdrawals boosting cumulative outflows to $1.46bn year-to-date, despite the country still accounting for the majority of managed assets invested in ETFs worldwide. The imbalance suggests US investors have been more inclined to de-risk amid recent volatility, while parts of Europe appear more willing to treat the pullback as a buying opportunity. 

Altcoins hold up 

Bitcoin was the only major cryptocurrency to suffer weekly outflows, with $264mn redeemed, reflecting continued caution toward the largest digital asset after the sell-off. In contrast, flows into altcoin products were positive, led by XRP ($63mn), Solana ($8mn) and Ether ($5mn) funds. 

Among altcoin funds, XRP remains the strongest performer year-to-date, with $109mn of inflows ahead of Solana with $69mn. Ether remains a laggard since 1 Jan with investors pulling $371mn from its funds.  

Structural unwind 

Bitcoin’s drop below $60,000 last week was less about long-term investors exiting and more about a fragile, leverage-heavy market structure giving way, according to Sandmark's analysis. While prices fell roughly 14% on a single day at the worst point, onchain data suggest most long-term holders and miners had already completed their distribution months earlier.  

Instead, selling pressure came primarily from short-term holders: investors holding Bitcoin for less than 155 days, who were pushed underwater as prices slipped below their cost basis, triggering forced selling and realized losses. 

At the same time, derivatives markets amplified the move. More than $2bn in positions were wiped out during the sell-off, with liquidations overwhelmingly concentrated in long positions.