Crypto exchange-traded products (ETPs) saw significant outflows last week, with $1.7 billion withdrawn, continuing a streak of negative flows for the fifth consecutive week.
Crypto exchange-traded products (ETPs) saw significant outflows last week, with $1.7 billion withdrawn, continuing a streak of negative flows for the fifth consecutive week. This brings the total outflows to $6.4 billion over the past five weeks, marking the longest negative streak since CoinShares began tracking these flows in 2015. Bitcoin ETPs bore the brunt of these outflows, with $978 million pulled from the market last week alone. Over the past five weeks, Bitcoin products have experienced $5.4 billion in outflows, significantly impacting their year-to-date (YTD) inflows, which have now dropped to $612 million.
Ethereum and Solana also saw notable outflows, with $176 million and $2.2 million pulled, respectively. However, XRP was an exception, seeing an inflow of $1.8 million, demonstrating some positive sentiment in an otherwise declining market.
The U.S. was the primary driver of these outflows, accounting for 93% of the total withdrawals, which equates to around $1.16 billion in the last five weeks. Europe also saw significant outflows, with $528 million leaving, primarily due to a withdrawal from a seed investor. However, Germany bucked the trend, recording a modest inflow of $8 million. The largest crypto ETP issuer, BlackRock, experienced $401 million in outflows last week, with month-to-date withdrawals reaching $594 million.
Meanwhile, 21Shares, a European crypto ETP provider, experienced $534 million in liquidations, contributing to the overall negative sentiment. Binance saw a dramatic drop in assets under management (AUM), which fell to just $15 million after a major investor exit. ProShares was one of the few major issuers that recorded positive net flows this month, with $2 million in inflows.
Despite the ongoing outflows, there have been some signs of resilience in the market. YTD inflows for crypto ETPs remain positive at $912 million. However, the market has seen a dramatic drop in total AUM, which has decreased by $48 billion due to sustained selling pressure.
On the technical side, Bitcoin’s stochastic Relative Strength Index (RSI) has shown a bullish crossover, which has historically been a precursor to price rebounds. This technical signal suggests that there could be a potential recovery in the near future. Additionally, institutional investors have been adjusting their strategies, with global crypto hedge funds increasing their Bitcoin exposure, bringing their accumulation levels to a four-month high.
The crypto market remains under pressure, with institutional investors continuing to pull capital amid market uncertainty. However, technical indicators and positive moves from certain assets hint at a potential recovery in the coming months.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
