Crypto ETPs Experience Significant Outflows Amid Market Uncertainty

According to Cointelegraph, cryptocurrency exchange-traded products (ETPs) experienced substantial outflows last week, continuing a trend of investor withdrawal. Digital asset investment firm CoinShares reported that crypto ETPs saw outflows totaling $508 million in the past trading week, following $415 million in outflows the previous week. The increased selling pressure in the crypto ETP sector coincided with investor caution following the U.S. presidential inauguration and subsequent market uncertainties surrounding trade tariffs, inflation, and monetary policy, as noted by CoinShares research head James Butterfill. Bitcoin (BTC) ETPs, the largest crypto asset by market capitalization, suffered the most significant losses, while XRP (XRP) investment products experienced another week of major inflows. Bitcoin investment products accounted for $571 million in outflows last week, highlighting the exclusive impact on Bitcoin. In contrast, altcoin ETPs recorded either some inflows or zero outflows, with XRP ETPs leading the buying trend with $38 million in inflows. Since November 2024, XRP ETPs have seen $819 million in inflows, reflecting investor optimism that the U.S. Securities and Exchange Commission will drop its lawsuit against Ripple and approve a spot XRP ETF. Solana (SOL), Ether (ETH), and Sui (SUI) followed with inflows of $8.9 million, $3.7 million, and $1.5 million, respectively. The past trading week also marked a rare event for BlackRock’s iShares exchange-traded funds (ETF), which experienced losses of $22 million. ProShares ETFs were among the few major U.S. ETPs that did not post losses last week, recording $38 million in inflows, according to CoinShares. Meanwhile, crypto ETPs by Grayscale Investments and Fidelity Digital Assets saw the largest outflows, amounting to $170 million and $166 million, respectively. Regionally, the majority of crypto ETP trading originated from the U.S., which saw $560 million in outflows. However, this negative trend was not mirrored in Europe, where steady inflows continued, with Germany and Switzerland leading with $30.5 million and $15.8 million in inflows, respectively.