Crypto ETPs Lose $876M, Bitcoin ETPs Drop 85% of Outflows

Cryptocurrency exchange-traded products (ETPs) have experienced a fourth consecutive week of outflows, totaling $876 million in losses during the past trading week. This brings the four-week total outflows to $4.75 billion, significantly impacting the year-to-date inflows, which have dropped to $2.6 billion. The sustained outflows have led to a decline in total assets under management (AuM) by $39 billion, reaching $142 billion, the lowest point since mid-November 2024. This decline is attributed to both negative price movements and continuous outflows.

Bitcoin ETPs were the primary driver of these outflows, accounting for $756 million, or 85% of last week’s total. Short-Bitcoin ETPs also saw outflows of $19.8 million, the largest since December 2024. The bearish sentiment was not limited to Bitcoin, as a wide range of altcoins also experienced significant outflows. Ether (ETH) ETPs saw $89 million of outflows, while Tron (TRX) and Aave (AAVE) ETPs lost $32 million and $2.4 million, respectively.

Despite the overall bearish sentiment, some altcoins continued to see inflows. Solana (SOL), XRP (XRP), and Sui (SUI) ETPs saw inflows totaling $16.4 million, $5.6 million, and $2.7 million, respectively. This indicates that while the market is generally bearish, there are still pockets of optimism and investment in certain cryptocurrencies.

The market has shown signs of capitulation, according to James Butterfill, head of research at CoinShares. The pace of outflows has slowed, but investor sentiment remains bearish. The sustained outflows and negative price movements have led to a significant decline in total assets under management, highlighting the challenges faced by the cryptocurrency market in recent weeks.