Crypto ETPs see biggest weekly outflows since February as investors pull $2B

Crypto investment products logged their largest weekly outflows since February, shedding $2 billion as global risk appetite declined. 

Crypto exchange-traded products (ETPs) saw $2 billion in outflows last week, up by nearly 71% from $1.17 billion recorded the previous week, CoinShares reported on Monday. This marks the third consecutive week of outflows, extending the cumulative outflow streak to $3.2 billion. 

CoinShares’ head of research, James Butterfill, attributed the outflows to monetary policy uncertainty and selling by crypto-native whales. As a result, total assets under management (AUM) in crypto ETPs decreased to $191 billion, representing a 27% decline from their peak of $264 billion in October.

The United States accounted for 97% of the outflows, totaling $1.97 billion, while Germany was an outlier with $13.2 million in inflows, bucking the global trend. 

Crypto ETPs see $2 billion in outflows across jurisdictions

While US-based crypto ETPs took most of the hits, the trend was reflected in many other countries.

Switzerland and Sweden recorded outflows of $39.9 million and $21.3 million, respectively. Meanwhile, Hong Kong, Canada and Australia saw combined outflows of $23.9 million.

The outflows hit Bitcoin (BTC) and Ether (ETH)-based ETPs the hardest. Bitcoin-based ETPs saw nearly $1.4 billion in funds exiting last week, which is about 2% of their total AUM.

On the other hand, Ether ETPs saw nearly $700 million in redemptions, accounting for approximately 4% of total assets. 

Smaller crypto ETPs also felt the impact. Solana (SOL) and XRP (XRP) ETPs saw outflows of $8.3 million and $15.5 million, respectively. 

Related: Bitcoin ETFs bleed $1.1B as analysts warn of ‘mini’ bear market at pivotal moment

Investors rotate as sentiment shifts

While single-asset ETPs saw big outflows, products that spread exposure across diversified crypto baskets saw inflows. 

According to CoinShares, multi-asset ETPs have seen $69 million in inflows over the last three weeks. The shift suggests that investors are seeking reduced volatility and broader coverage as they ride out uncertainty. 

Apart from multi-asset coverages, short-bitcoin funds — ETPs that bet on Bitcoin’s decline — saw $18.1 million in inflows in the same time period. This suggests a slight increase in hedging activity among investors.