Crypto ETPs Face Record $2.9B Sell-Off Amidst Market Turmoil

Cryptocurrency exchange-traded products (ETPs) experienced a significant sell-off last week, with outflows reaching a record $2.9 billion. This marks the largest weekly sell-off in history, according to a report by European crypto investment firm CoinShares.

Following three consecutive weeks of outflows, global crypto ETPs have seen a total of $3.8 billion wiped out. The sell-off was likely driven by several factors, including the $1.5 billion Bybit hack, hawkish rhetoric by the United States Federal Reserve, and the preceding 19-week inflow streak of $29 billion. These elements likely led to a mix of profit-taking and weakened sentiment toward the asset class.

Bitcoin (BTC), the largest asset for global crypto ETPs, bore the brunt of the weaker sentiment with $2.6 billion of outflows last week. Its month-to-date (MTD) flows were also down $3.2 billion. Short Bitcoin ETPs saw minor inflows totaling $2.3 million.

On the other hand, Sui (SUI) was the best performer in terms of ETPs last week, seeing $15.5 million in inflows. XRP (XRP)-based ETPs followed with $5 million inflows. ETPs on Ether (ETH), the second largest crypto asset by market cap, saw $300 million in outflows last week, with MTD inflows amounting to $490.3 million.

With the latest sell-off, the total assets under management (AUM) in crypto ETPs dropped to $138.8 billion after rising to a historical high of $173 billion in January.