Crypto ETPs See $446M Outflow Over Christmas as Capital Rotates from BTC/ETH to XRP and SOL
Crypto exchange-traded products (ETPs) recorded $446 million in net outflows during the Christmas week, extending a cautious trend that began with October’s market drawdown. CoinShares reports cumulative outflows of $3.2 billion since Oct. 10, despite $46.3 billion of inflows year-to-date and an overall AUM rise of about 10% YTD. Bitcoin (BTC) and Ethereum (ETH) ETPs led weekly redemptions with roughly $443 million and $59.5 million withdrawn, respectively. By contrast, newer or recently listed products attracted capital: XRP ETPs drew $70.2 million (surpassing $1 billion since U.S. ETF launches in mid‑October) and Solana (SOL) ETPs added $7.5 million (about $750 million cumulative). Regionally, U.S. investors accounted for most weekly outflows (~$460 million), while Germany posted the largest inflows (~$35.7 million weekly, ~$248 million month‑to‑date). CoinShares’ research head James Butterfill noted that AUM growth has not translated into positive net investor returns once flows are considered, indicating selective rotation rather than broad market buying. Key takeaways for traders: continued rotation from legacy BTC/ETH ETPs into XRP and SOL, elevated defensive positioning among U.S. investors, and persistent selective engagement with crypto capital heading into year‑end. Monitor ETP flows for short‑term liquidity pressure on BTC/ETH and growing demand signals for XRP and SOL.
Neutral
The net outflow of $446M, concentrated in BTC and ETH ETPs, implies short‑term selling pressure and potential liquidity-driven downward price moves for BTC and ETH. However, the sums are modest relative to total market capitalization and year‑to‑date inflows remain large, which limits sustained bearish implications. Simultaneous inflows into XRP and SOL ETPs signal capital rotation and selective demand that can support price strength in those tokens. Regionally concentrated outflows (notably the U.S.) suggest defensive positioning rather than broad market capitulation. In the short term, traders should expect increased volatility and possible downward pressure on BTC/ETH during redemption windows; XRP and SOL may outperform as flows continue into their ETPs. Over the longer term, unless outflows accelerate or widen beyond legacy products, the impact on BTC and ETH prices is likely limited, as large structural inflows and broader market liquidity remain supportive. Overall, the picture is neutral: rotation and selective flows change relative performance but do not yet constitute a clear market direction for BTC/ETH.