Crypto ETPs See $6.4 Billion Outflows in Five Weeks

Cryptocurrency exchange-traded products (ETPs) have witnessed a substantial downturn, with $1.7 billion in outflows recorded over the past week. This marks the fifth consecutive week of outflows, bringing the total five-week outflows to $6.4 billion. The ongoing outflow streak has also marked the 17th straight day of outflows, the longest negative streak since records began in 2015. Despite this negative sentiment, year-to-date (YTD) inflows remain positive at $912 million.

Bitcoin ETPs have been particularly hard hit, with $5.4 billion in outflows over the past five weeks. After seeing $756 million outflows in the first week of March, Bitcoin ETPs experienced increased selling in the trading week from March 10 to March 14, with a further $978 million in outflows. This has left just $612 million of YTD inflows by March 14.

Other cryptocurrencies have also seen outflows, with Ether (ETH) and Solana (SOL) ETPs experiencing $175 million and $2.2 million in outflows, respectively. However, XRP ETPs have bucked the trend, seeing a further $1.8 million in inflows.

The prolonged outflow streak is a cause for concern, as it indicates a significant shift in investor sentiment towards cryptocurrency ETPs. The fact that this is the longest negative streak since 2015 suggests that the current market conditions are particularly challenging. However, the fact that YTD inflows remain positive is a sign that there is still some optimism in the market.

The outflows from Bitcoin ETPs are particularly noteworthy, as Bitcoin is the largest and most well-known cryptocurrency. The fact that investors are pulling out of Bitcoin ETPs in such large numbers suggests that there is a significant loss of confidence in the cryptocurrency market as a whole. The outflows from Ether and Solana ETPs are also concerning, as these are two of the largest altcoins by market capitalization.

The inflows into XRP ETPs are a bright spot in an otherwise bleak landscape. XRP has been a controversial cryptocurrency, with legal battles and regulatory uncertainty surrounding it. However, the fact that investors are still putting money into XRP ETPs suggests that there is still some demand for the cryptocurrency.

The prolonged outflow streak is a cause for concern, as it indicates a significant shift in investor sentiment towards cryptocurrency ETPs. The fact that this is the longest negative streak since 2015 suggests that the current market conditions are particularly challenging. However, the fact that YTD inflows remain positive is a sign that there is still some optimism in the market.