Crypto exchange-traded products (ETPs) saw significant outflows last week, with $1.7 billion withdrawn, continuing a streak of negative flows for the fifth consecutive week. This brings the total outflows to $6.4 billion over the past five weeks, marking the longest negative streak since CoinShares began tracking these flows in 2015. Bitcoin ETPs bore the brunt of these outflows, with $978 million pulled from the market last week alone. Over the past five weeks, Bitcoin products have experienced $5.4 billion in outflows, significantly impacting their year-to-date (YTD) inflows, which have now dropped to $612 million.
Ethereum and Solana also saw notable outflows, with $176 million and $2.2 million pulled, respectively. However, XRP was an exception, seeing an inflow of $1.8 million, demonstrating some positive sentiment in an otherwise declining market.
The U.S. was the primary driver of these outflows, accounting for 93% of the total withdrawals, which equates to around $1.16 billion in the last five weeks. Europe also saw significant outflows, with $528 million leaving, primarily due to a withdrawal from a seed investor. However, Germany bucked the trend, recording a modest inflow of $8 million. The largest crypto ETP issuer, BlackRock, experienced $401 million in outflows last week, with month-to-date withdrawals reaching $594 million.
Meanwhile, 21Shares, a European crypto ETP provider, experienced $534 million in liquidations, contributing to the overall negative sentiment. Binance saw a dramatic drop in assets under management (AUM), which fell to just $15 million after a major investor exit. ProShares was one of the few major issuers that recorded positive net flows this month, with $2 million in inflows.
Despite the ongoing outflows, there have been some signs of resilience in the market. YTD inflows for crypto ETPs remain positive at $912 million. However, the market has seen a dramatic drop in total AUM, which has decreased by $48 billion due to sustained selling pressure.
On the technical side, Bitcoin’s stochastic Relative Strength Index (RSI) has shown a bullish crossover, which has historically been a precursor to price rebounds. This technical signal suggests that there could be a potential recovery in the near future. Additionally, institutional investors have been adjusting their strategies, with global crypto hedge funds increasing their Bitcoin exposure, bringing their accumulation levels to a four-month high.
The crypto market remains under pressure, with institutional investors continuing to pull capital amid market uncertainty. However, technical indicators and positive moves from certain assets hint at a potential recovery in the coming months.
