Crypto ETPs Lose $876M as Bitcoin Falls 10% Amid Economic Uncertainty

Cryptocurrency exchange-traded products (ETPs) have experienced a fourth consecutive week of outflows, totaling $876 million. This brings the cumulative losses for the month to $4.75 billion, marking a significant downturn in the market. The outflows have been driven by a combination of economic uncertainty and shifting investor sentiment, with Bitcoin ETPs leading the decline. Bitcoin investment products accounted for the majority of the $876 million in withdrawals, reflecting broader market concerns and economic instability.

Despite the overall bearish trend, some alternative digital assets have shown resilience. XRP investment products, for instance, recorded another week of inflows, indicating sustained investor confidence in the asset. This trend suggests that while Bitcoin remains the leading asset, some investors are seeking exposure to other cryptocurrencies during times of volatility. The continued interest in XRP products highlights the diversified investment strategies being adopted by market participants.

The recent outflows coincide with broader economic uncertainty and regulatory caution. Macroeconomic factors, including trade policies, inflation concerns, and market instability, have influenced investor decisions. As governments around the world tighten regulations on digital assets, institutional investors have been reassessing their exposure to crypto-related financial products. This regulatory landscape has contributed to the overall bearish sentiment in the market, with total assets under management (AuM) dropping to a five-month low of $142 billion.

The decline in AuM was not limited to Bitcoin; altcoins such as Ethereum, Tron, Solana, XRP, Sui, and Aave also experienced substantial outflows. Ethereum, the second-largest cryptocurrency, saw the highest outflows among altcoins, totaling $89 million. Tron followed with $32 million, and Solana with $16.4 million. XRP, Sui, and Aave had outflows of $5.6 million, $2.7 million, and $2.4 million, respectively. These outflows reflect the broader market sentiment and the impact of economic uncertainty on investor behavior.

The market's direction in the coming days could be influenced by key economic events, such as upcoming inflation reports. The release of February’s Consumer Price Index and the Producer Price Index (PPI) report could further impact the market's trajectory. If the inflation numbers are higher than predicted, risk markets could suffer, potentially plunging the crypto market deeper into