Crypto ETPs $2B Outflows: Bitcoin $1.4B, Ethereum $700M
Crypto ETP outflows totaled $2bn last week, marking the largest weekly withdrawal since February and extending a three-week slump that has reduced assets under management (AUM) to $191bn, down 27% from October.
The United States accounted for $1.97bn of crypto ETP outflows, while Germany saw a $13.2m inflow and Brazil recorded modest gains. Other regions including Switzerland, Sweden, Hong Kong, Canada and Australia experienced combined outflows of around $93m.
Bitcoin ETPs led redemptions with $1.4bn (2% of AUM) withdrawn, and Ethereum lost $700m (4% of AUM). Smaller products saw outflows of $8.3m for SOL and $15.5m for XRP. In contrast, SUI attracted $6m, LTC $3.3m and ADA $0.4m in inflows. Multi-asset ETPs drew $69m over three weeks, while short Bitcoin funds saw $18.1m of inflows.
Analysts attribute the outflows to monetary policy uncertainty and whale selling, triggering a rotation into diversified and hedged products. They view the sell-off as a broader market correction rather than a structural downtrend, and expect cautious accumulation near support levels ahead of renewed ETF inflows.
Bearish
The $2bn crypto ETP outflows, led by significant redemptions in Bitcoin and Ethereum products, signal strong selling pressure and reduced institutional demand, which is likely to weigh on prices in the short term. The shift into multi-asset and short Bitcoin funds underscores hedging behavior, further limiting immediate upside. However, analysts frame this as a temporary market correction rather than a structural decline, suggesting that cautious accumulation near support levels and the eventual return of ETF flows could stabilize or reverse the downtrend over the medium to long term.