Crypto ETPs See $1.17B in Weekly Outflows

Key Outflows and Market Sentiment

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  $1.17 billion exited crypto ETPs in one week.
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  Bitcoin products saw the majority of outflows.
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  Investor sentiment turns cautious amid market uncertainty.

Last week, digital asset investment products, commonly known as crypto ETPs (Exchange-Traded Products), experienced a significant wave of outflows totaling $1.17 billion, according to the latest report from CoinShares. This marks the largest weekly outflow since March 2024 and reflects a growing wave of caution among institutional investors.

Bitcoin Leads the Decline

Bitcoin-related investment products took the biggest hit, accounting for over 85% of the total outflows. This suggests that institutional sentiment toward the flagship cryptocurrency has cooled off in the face of recent market uncertainty and fluctuating price action. Some experts believe the outflows may be a result of profit-taking or portfolio rebalancing after recent rallies.

In contrast, Ethereum and other altcoin ETPs saw relatively modest movements, with Ethereum experiencing minor outflows and some smaller coins like Solana even seeing slight inflows.

Investor Sentiment Turns Defensive

Analysts suggest several factors could be behind this retreat, including macroeconomic concerns, potential regulatory developments, and ongoing volatility in the crypto space. The data indicates that while crypto continues to attract long-term interest, short-term caution is shaping fund flows.

It’s worth noting that despite the outflows, year-to-date figures for most crypto ETPs remain in positive territory, indicating overall net inflows across the broader timeline.