CoinShares reports slowdown in digital asset fund flows as investors pivot to blockchain equities

Investors are pulling money out of digital asset funds at a pace that would make even the most hardened portfolio manager wince. CoinShares’ latest weekly flow reports paint a picture of an institutional class that still believes in blockchain, just not in the way crypto maximalists might hope.

The firm’s data shows that digital asset investment products hemorrhaged $1.47B in May 2026 and $1.67B in June 2026, marking some of the largest redemptions of the year. At the same time, blockchain equity ETPs and ETFs have been quietly absorbing capital at an impressive clip, with $72.6M in inflows recorded in January alone and a cumulative $617M pouring in over just three weeks in April.

The great rotation: crypto out, blockchain stocks in

Portfolio weightings for digital assets among institutional investors dropped to just 0.3% in early 2026, a level that suggests many allocators have moved crypto from “strategic allocation” to “rounding error.”

James Butterfill, CoinShares’ Head of Research, has pointed to macroeconomic factors as primary drivers of the shift. Changing interest rates and geopolitical tensions have pushed investors toward what they perceive as higher-quality exposures. In practice, that means swapping direct Bitcoin and Ethereum positions for equity-based products tied to blockchain infrastructure companies.

Bitcoin still dominates the conversation

Even as flows turn negative, Bitcoin products continue to account for the vast majority of both inflows and outflows across digital asset investment products. When sentiment is positive, Bitcoin funds absorb the lion’s share of capital. When risk appetite fades, they absorb the lion’s share of redemptions.

Ethereum-linked products have followed a similar, if smaller-scale, pattern. The combined effect has been a sustained period of net selling pressure across the two largest crypto assets by market capitalization.

Blockchain equities and the tokenization angle

The $617M that flowed into blockchain equity ETPs over three weeks in April represented sustained institutional conviction in companies building blockchain infrastructure, from mining operations to enterprise software platforms leveraging distributed ledger technology.

Meanwhile, CoinShares has flagged tokenized equities as a fast-growing but still nascent segment worth watching. The total value of tokenized equities sits around $2.2B, a figure that barely registers against the scale of global equity markets.

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