Crypto ETPs Report Major Outflows

• Crypto ETPs saw $876M in outflows last week, totaling $4.75B in four weeks.
• Bitcoin led losses with $756M in withdrawals, constituting 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, marking their fourth consecutive week of declines. According to CoinShares, the total outflows over the past four weeks have reached $4.75 billion, bringing year-to-date inflows down to $2.6 billion as a result of these ongoing withdrawals.

Bitcoin ETPs Dominate Outflows as Investor Sentiment Remains Bearish

ETPs have continued to decrease after a record weekly outflow of $2.9 billion last week, despite a slowdown in the rate of withdrawals. James Butterfill, head of research at CoinShares, noted persistent negative investor sentiment, indicating market conditions are showing signs of capitulation, which has negatively affected investment flows.

Bitcoin ETPs accounted for the majority of last week’s outflows, with $756 million in withdrawals, which comprised 85% of overall outflows. Short-Bitcoin ETPs saw notable redemptions, recording $19.8 million in outflows—the largest since December 2024.

Total Assets Under Management Fall to Lowest Level in Four Months

The ongoing outflows have adversely impacted the total assets under management (AUM) of crypto ETPs, which decreased by $39 billion, now standing at $142 billion, the lowest level since mid-November 2024. Butterfill attributes this drop to the combination of continuous outflows and negative price trends in the broader crypto market.

The negative trends have extended beyond Bitcoin. ETPs centered on Ethereum also experienced outflows of $89 million last week. Additionally, other altcoins like Tron and Aave suffered declines of $32 million and $2.4 million, respectively. However, some cryptocurrencies diverged from this trend, as Solana, XRP, and Sui experienced inflows of $16.4 million, $5.6 million, and $2.7 million, respectively.

Institutional Crypto ETPs See Heavy Outflows as BlackRock and Fidelity Lead Declines

Among the prominent crypto ETP providers, Fidelity Investments recorded substantial outflows, with $201 million in withdrawals over the past week, boosting its year-to-date withdrawals to $159 million. BlackRock’s iShares ETPs followed closely with outflows totaling $193 million.

Despite the recent trend of selling, BlackRock remains the largest institutional owner of cryptocurrency-backed assets with an AUM of $52.8 billion, while year-to-date outflows have reached $3 billion.

Institutional funds in the U.S. also experienced withdrawals; ARK Invest and 21Shares saw a cumulative $164 million in outflows yet maintained a positive year-to-date flow of $110 million. Conversely, ProShares ETFs managed to avoid outflows, securing fresh inflows of $15 million.