Trillion-dollar losses hit cryptocurrency funds

The digital assets sector, which has been mired in a prolonged slump, has new victims: funds created to make cryptocurrencies of all kinds accessible to ordinary investors.

While Bitcoin, the sector’s leading currency, has fallen 28% this year amid a months-long downturn, other cryptocurrencies have performed even worse, as crypto funds have suffered trillion-dollar losses. A smaller-cap crypto index dropped more than 40% in 2026, while more prominent coins, including Dogecoin, Solana, and ADA, lost roughly half their value. Trading platforms have also delisted entire groups of coins, and trading activity has declined.

Redemptions from plans, alongside a string of fund closures, illustrate how the prolonged weakness in smaller cryptocurrencies is affecting alternative investment firms that sought to capitalize on retail investors’ appetite for digital products aimed at the mass market.