Bitcoin and Ethereum ETFs: The Great American Exodus?

by

Well, butter my biscuit and call me confused. The good ol’ US of A seems to be giving Bitcoin and Ethereum ETFs the cold shoulder, as investors pack their digital bags and head for the international hills. Apparently, two weeks of positive inflows in 2026 just wasn’t enough to keep the romance alive.

What’s causing this mass migration? Oh, just the usual suspects: Treasury yields acting like they’ve got somewhere to be, a labor market that’s more resilient than a cockroach in a nuclear fallout, and global ex-US stock funds soaking up cash like a sponge at a spill convention.

Money is Fleeing Faster Than a Cat at a Vacuum Cleaner Convention

Over the past few weeks, US spot Bitcoin ETFs have gone from “hot ticket” to “who invited them?” Total assets have plummeted from a lofty $115 billion to a mere $83 billion. That’s right, folks-the party’s over, and the punch bowl is half empty.

Ethereum ETFs? Don’t even get me started. They’ve shrunk faster than a cheap sweater in a hot wash, dropping from $18 billion to a paltry $11 billion. Someone call the financial EMTs-we’ve got a contraction situation here.

And let’s be clear: this isn’t your garden-variety volatility. This is capital doing the financial equivalent of ghosting. No text, no call, just a sudden disappearance into the night.

Meanwhile, international equity ETFs are throwing a party, and everyone’s invited. January saw record inflows into global ex-US funds, gobbling up roughly one-third of total ETF inflows. That’s like showing up to a potluck and eating all the deviled eggs before anyone else gets there.

Rotation? More like a full-on financial conga line.

This is incredible:

At least 115 S&P 500 stocks have dropped -7% or more in a single day over the last 8 trading sessions.

And yet, the S&P 500 is down just -2% from its all-time high.

In the past, when at least 115 stocks saw a decline of -7% or more in an 8-day trading…

– The Kobeissi Letter (@KobeissiLetter) February 13, 2026

Institutional investors are apparently deciding that US growth trades-crypto included-are about as appealing as a soggy sandwich. Instead, they’re flocking to cheaper overseas markets, where the macro conditions are as sunny as a British summer (which, let’s be honest, isn’t saying much).

And let’s not forget the US jobs data, which has been flexing harder than a bodybuilder at a beach. Stronger jobs mean higher Treasury yields, which in turn make bonds look like the cool kid at school. Crypto? It’s sitting in the corner, wondering where all its friends went.

Bitcoin and Ethereum, those high-beta darlings, are feeling the pinch. When capital starts cozying up to safer, yield-generating assets, they’re left out in the cold like last year’s fashion trend.

The result? A structural headwind that would make a sailor weep.

Remember when crypto ETFs were the belle of the ball in 2024? Those were the days. Sustained inflows amplified price moves like a megaphone at a whisper contest. Now? They’re more like a garage sale-everyone’s just trying to offload their stuff.

Does this mean crypto’s long-term thesis is toast? Not exactly. But in the short term, it’s about as appealing as a raincloud at a picnic. Until capital decides to come back from its international vacation or macro conditions stop acting like a grumpy teenager, those ETF outflows might just keep weighing on Bitcoin, Ethereum, and the rest of the crypto gang.

So, what’s the takeaway? Well, if you’re a crypto enthusiast, maybe it’s time to invest in a good travel adapter. The action’s clearly happening overseas.

Read More

2026-02-14 02:16