Crypto ETPs See $2.9B Outflow in Three Weeks as Bitcoin Sell-Off Intensifies

• Crypto ETPs saw $2.9B in outflows as Bitcoin-led sell-off intensified, marking a sharp reversal from previous inflows.
• Despite widespread withdrawals, select altcoins like Sui and XRP attracted new investments, showing resilience in a volatile market.

The cryptocurrency market has faced significant turbulence in recent weeks, marked by record outflows from exchange-traded products (ETPs) and a sharp sell-off in Bitcoin. According to a CNF update, crypto ETPs have expanded into new markets like Finland, yet the overall market sentiment remains bearish amid substantial withdrawals.

Record-Breaking ETP Outflows

According to CoinShares, crypto ETPs saw unprecedented outflows of $2.9 billion, extending a three-week streak totaling $3.8 billion in withdrawals. As reported by Markets Insider, Bitcoin (BTC) bore the brunt of the outflows, losing $2.6 billion over the past week.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, bore the brunt of the outflows, losing $2.6 billion over the past week. Meanwhile, funds that bet against bitcoin, known as short Bitcoin ETPs, saw only a modest inflow of $2.3 million, indicating that bearish sentiment has yet to fully take hold.

This marks a sharp reversal from the previous 19-week inflow streak, which accumulated $29 billion. Analysts attribute this shift to a recent $1.5 billion hack on the Bybit exchange and a more hawkish stance from the U.S. Federal Reserve.

Bitcoin Bears the Brunt

Bitcoin, the largest cryptocurrency by market capitalization, saw a significant $2.6 billion outflow in just a week. This trend highlights growing investor caution, with many opting to de-risk portfolios amid escalating market uncertainties.

Despite this, the lack of substantial inflows into short Bitcoin ETPs suggests that investors are hesitant to fully bet against BTC.

Altcoins: Mixed Fortunes

Altcoins experienced mixed investor sentiment during this period. Sui (SUI) attracted $15.5 million in inflows, signaling strong investor confidence. XRP (XRP) also saw fresh investments, reflecting selective optimism among investors.

On the other hand, Solana (SOL) and Toncoin (TON) suffered major withdrawals, with $7.4 million and $22.6 million exiting their respective markets.

Spot Bitcoin ETFs and Futures See Declines

The sell-off extended to Spot Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing a record $1.3 billion outflow—its largest since inception. Additionally, CME Bitcoin futures open interest plummeted from 170,000 BTC to 140,000 BTC over two weeks, signaling a potential shift in institutional positioning.

Market Outlook

These developments highlight growing investor caution driven by security concerns and macroeconomic pressures. While Bitcoin and major altcoins faced outflows, select assets like Sui and XRP continue to attract investments, suggesting that investors are still seeking opportunities but with increased caution.

As the market evolves, tracking institutional and retail investment patterns will be crucial in determining the future trajectory of digital assets.

According to CoinMarketCap data, Bitcoin (BTC) is currently trading at $82,002.61, reflecting an 11.31% decrease in the past day and a 6.50% decline over the past week.