Crypto ETPs Bleed $876M in 4th Week of Outflows—Total Hits $4.75B

Cryptocurrency exchange-traded products (ETPs) yet again saw another week of outflows, now marking four weeks in a row of investor withdrawals. Funds in the past trading week fell $876 million, finishing a month of outflows $4.75 billion, according to digital asset investment firm CoinShares.

Crypto ETP Outflows Continue for the Fourth Consecutive Week

On March 10, CoinShares reported that capital was leaving cryptocurrency ETPs, though at a much slower pace than the record $2.9 billion outflow that investors wiped last week. However, investor sentiment remains weak, said the firm’s head of research, James Butterfill, despite the rate of withdrawals’ decline.

Butterfill also alluded to possible market capitulation, saying: “Evidence suggests that few may be selling due to general economic conditions.” The most recent figures reduce the year-to-date net inflows to $2.6 billion, who render the crypto investment sector as highly volatile.

Bitcoin ETPs Experience Largest Withdrawals

Bitcoin (BTC) investment products saw the most significant outflows last week, following a trend observed throughout the recent downturn. According to CoinShares, Bitcoin ETPs accounted for the majority of the $876 million in withdrawals.

The selling pressure on Bitcoin investment products aligns with broader market concerns, including economic uncertainty and shifting monetary policies. At the same time, certain alternative digital assets have experienced steady interest from investors despite the downturn.

XRP Investment Products Attract Strong Inflows

Unlike Bitcoin ETPs, XRP investment products recorded another week of inflows, signaling sustained investor confidence in the asset. This trend follows a pattern of increasing interest in XRP-based investment vehicles, even as other digital asset products face capital outflows.

Despite rising institutional interest in some altcoins, demand for XRP products continues. Bitcoin is still the leading asset on the market, but XRP’s inflows demonstrate that some investors are looking for exposure to other cryptocurrencies during times of volatility.

Market Conditions Influence Crypto ETP Activity

CoinShares noted that the latest outflows coincide with broader economic uncertainty following recent global developments. Butterfill suggested that macroeconomic factors, including trade policies, inflation concerns, and market instability, may have influenced investor decisions.

This regulatory landscape has also been one of caution in the market. As governments around the world clamp down on digital assets, institutional investors have been rethinking their exposure to crypto-related financial products.

Cryptocurrency ETPs continue to witness fluctuations and, as such, the investor sentiment is being observed by the market participants in the coming weeks.