- Crypto ETPs saw $876M in outflows last week, totaling $4.75B in four weeks.
- Bitcoin led losses with $756M in withdrawals, 85% of total outflows.
- Solana, XRP, and Sui defied the trend, gaining $16.4M, $5.6M, and $2.7M.
Cryptocurrency exchange-traded products (ETPs) experienced $876 million in withdrawals over the last week, signifying their fourth straight week of declines. According to CoinShares, the total outflows in the past four weeks have hit $4.75 billion. Year-to-date inflows have decreased to $2.6 billion due to these ongoing declines
Bitcoin ETPs Dominate Outflows as Investor Sentiment Remains Bearish
ETPs continued to decrease after a record weekly outflow of $2.9 billion last week, while the rate of withdrawals slowed. However, according to James Butterfill, head of research at CoinShares, investor sentiment remained negative. He observed that market conditions indicated signs of capitulation, which further impacted investment flows negatively.
Bitcoin ETPs were responsible for most of last week’s outflows, recording $756 million in withdrawals, which made up 85% of the overall outflows. Short-Bitcoin ETPs experienced notable redemptions, with $19.8 million in outflows, representing the biggest withdrawal since December 2024.
Total Assets Under Management Fall to Lowest Level in Four Months
The effects of ongoing outflows have been clear in the overall assets under management (AUM) in crypto ETPs. AUM fell by $39 billion, reaching $142 billion, the lowest point since mid-November 2024. Butterfill linked the drop to ongoing outflows and negative price trends in the wider crypto market.
The negative trend spread past Bitcoin. ETPs based on Ethereum saw outflows of $89 million last week. Moreover, altcoins like Tron and Aave saw drops of $32 million and $2.4 million, respectively. Nonetheless, several cryptocurrencies diverged from the trend. Solana, XRP, and Sui experienced inflows of $16.4 million, $5.6 million, and $2.7 million, accordingly.
Institutional Crypto ETPs See Heavy Outflows as BlackRock and Fidelity Lead Declines
Fidelity and BlackRock ETPs Top Institutional Outflows Among leading crypto ETP providers, Fidelity Investments saw significant outflows, totaling $201 million in withdrawals during the past week. This increased its year-to-date withdrawals to $159 million. BlackRock’s iShares ETPs were the second-largest decline, experiencing outflows of $193 million.
Despite the recent selling trend, BlackRock continued to be the largest institutional owner of cryptocurrency-backed assets. The company held a total AUM of $52.8 billion, while year-to-date outflows totaled $3 billion.
Institutional funds in the U.S. also experienced decreases. ARK Invest and 21Shares recorded a total of $164 million in outflows, yet their year-to-date flows stayed positive at $110 million. In contrast, ProShares ETFs successfully sidestepped outflows and noted $15 million in fresh inflows.