Despite recent optimistic developments like legal wins and new Bitcoin ETF filings, cryptocurrency investment products have experienced steady outflows totaling close to half a billion dollars over the last 9 weeks.

Crypto funds saw a $54 million exit last week alone, marking the 5th consecutive week of selloffs. Bitcoin made up $45 million of the outflows as investors reduced exposure.

The outflows come despite Bitcoin notching its first weekly gain in a month recently, partially rebuilding correlation with tech stocks. However, the momentum quickly stalled.

Ethereum saw $4.8 million in withdrawals last week as well, even with attr1 staking yields. Altcoins like Binance Coin and Polygon also registered minor outflows.

With asset managers shunning crypto in the risk-off environment, attracting fresh institutional capital remains an uphill battle. Recent positive developments have failed to shift the sentiment tide.

But with outflows hitting $450 million over two months, the markets may be approaching capitulation. If so, this purge could set the stage for renewed institutional appetite when macro conditions improve. For now, though, caution persists.