US investors can leave Bitcoin and Ethereum ETFs for international markets

Bitcoin and Ethereum funds in the United States are seeing continuous flows as investors rotate capital into international stocks. Both crypto funds have seen only two weeks of positive inflows so far in 2026.

The change comes amid rising Treasury yields, a resilient U.S. labor market, and record inflows into former global U.S. equity funds.

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Money moves in international ETF markets

During the last few weeks, The second American pointiCurrency exchange funds They moved into an area of ​​clear net flow. Total assets fell sharply from recent highs near $115 billion to about $83 billion.

Ethereum ETFs show a sharper contraction, with assets falling from about $18 billion to nearly $11 billion.

This is not a random fluctuation. It reflects the capital leaving the asset class.

Meanwhile, international equity funds posted their strongest inflows in years.

January saw record allocations in offshore funds from US Global, accounting for about a third Total ETF flows Although it represents a much smaller share of total assets.

This indicates significant turnover.

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This is incredible:

At least 115 S&P 500 stocks have fallen -7% or more in one day in the last 8 trading sessions.

Still, 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 trade… pic.twitter.com/lY1oSKypkl

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

Institutional investors appear to be reducing their exposure to crowded U.S. growth stocks — including cryptocurrencies — and reallocating to cheaper offshore markets amid improving macro conditions abroad.

Meanwhile, I paid Stronger US jobs data Treasury yields to increase. Higher yields tighten financial conditions and increase the attractiveness of bonds compared to risk assets.

Bitcoin and thin Ethereumwhich trade with high beta liquidity, tend to double when capital moves to safer or higher yielding assets.

This combination creates structural headwinds.

Cryptocurrency funds were a major source of demand in 2024, fueling upward price movements with sustained inflows.

Now this mechanism is reversed. Instead of promoting associations, ETFs act as distribution channels.

This does not invalidate the long-term hypothesis of digital currencies. However, it weakens the short-term liquidity fund.

Until capital turnover slows down and macro conditions calm, ETF flows can continue to impact Bitcoin, Ethereum and the general cryptocurrency market.