Bitcoin Faces Massive $756M Exit as Crypto ETPs Suffer 4th Week of Outflows

Key Takeaways:

Crypto ETPs faced their fourth consecutive week of outflows, totaling $876 million.
Bitcoin saw the most significant losses, with $756 million withdrawn.
Some altcoins, including Solana and XRP, continued to attract inflows.

The crypto exchange-traded products (ETPs) market has been experiencing a prolonged bearish trend, with investors pulling out funds for the fourth straight week. According to recent data from CoinShares, total outflows reached $876 million in the past trading week, bringing cumulative outflows over this period to $4.75 billion.

This persistent decline has significantly impacted total assets under management (AuM), which now stand at $142 billion, marking a sharp $39 billion drop from their peak. The downturn is attributed to both adverse price movements and sustained capital withdrawals, reflecting growing investor caution in digital asset investments.

Despite this negative trend, there are signs of a slowing pace of outflows compared to previous weeks. However, investor sentiment remains fragile as macroeconomic uncertainties and regulatory developments continue to weigh on market confidence.

A significant portion of these outflows originated from the United States, where investors withdrew $922 million, highlighting the regions cautious stance on crypto-related investments.

Meanwhile, Switzerland, Canada, and Germany emerged as exceptions, with each country recording modest inflows, suggesting selective confidence in the market.

Bitcoin and Ethereum Experience Heavy Withdrawals

Bitcoin remained the primary target of outflows, with investors pulling $756 million from the asset last week. The persistent negative sentiment toward Bitcoin has led to a steady decline in its market performance, reinforcing concerns over its short-term price stability.

Additionally, short-Bitcoin products also recorded outflows of $19.8 million, marking the largest withdrawal since December 2024. This suggests that some investors may be repositioning themselves, either reducing exposure to risk or shifting toward alternative strategies.

Ethereum also faced considerable outflows, losing $89 million as investors continued to trim their exposure to the second-largest cryptocurrency.

Other altcoins followed suit, with Tron experiencing $32 million in withdrawals and Aave seeing $2.4 million in losses. The broad-based sell-off across these major digital assets reflects the overall cautious stance investors are adopting amid ongoing market fluctuations.

Selective Altcoins Show Resilience

While the majority of the cryptos witnessed substantial outflows, there were altcoins which bucked the trend, demonstrating relative strength in demand. Solana witnessed $16.4 million in inflows, which reaffirms its growing popularity in the market.

XRP also saw a turnaround with $5.6 million in new investments, while $2.7 million in new funds came in for Sui. These trends suggest investors are strategically investing in assets with firmer fundamentals or growth opportunities in the face of the broader market decline.

Meanwhile, blockchain-based equity ETPs were no exception to the pessimism, with last-week outflows amounting to $48 million. This reflects how mainstream equity markets tied to blockchain technology are also suffering at the hands of investors in the wake of the prevailing volatility in the crypto market.

Text source: TronWeekly

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