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. I...