Last week, investments in crypto exchange-traded products (ETPs) experienced a significant decline, witnessing outflows totaling $1.7 billion, as revealed in a recent report.
This marks the fifth week in a row of substantial capital withdrawals, bringing the cumulative outflows to $6.4 billion—an unprecedented level. Consequently, the year-to-date inflows for the sector now stand at just $912 million.
James Butterfill, the Head of Research, noted that the market has faced 17 straight days of outflows—the longest continuous period recorded since tracking for global crypto ETPs began in 2015.
He indicated that this extended downturn has led total assets under management (AuM) to decrease by $48 billion, now resting at $133 billion.
US Investors Drive Bitcoin Withdrawals
In the United States, investors spearheaded the outflow trend, representing 93% of the total withdrawals last week, with $1.16 billion exiting the market.
The significant outflows can be attributed to US-based spot Bitcoin ETF providers, such as firms including BlackRock, Grayscale, Fidelity, and Ark 21Shares, which saw outflows of $401 million, $134 million, $317 million, and $68 million, respectively.
This led to Bitcoin-related investment products recording a combined $978 million in outflows, pushing their five-week flow into the negative at $5.4 billion.
Short-Bitcoin positions also faced sell-offs, with investors retracting $3.6 million amid Bitcoin’s stagnant price activity.
Simultaneously, Ethereum and Solana investment products saw outflows amounting to $175 million and $2.2 million, respectively. Blockchain equity funds were not spared either, with $40 million exiting the sector.
Butterfill highlighted the plight of Binance, which experienced a near-total loss of its AuM following the exit of a seed investor, leaving it with only $15 million under management.
XRP Shines Amidst Adversity
XRP emerged as a rare source of positivity, garnering $1.8 million in new inflows last week.
This contribution brought its monthly inflow total to $7.4 million, placing it second only to Solana, which led with $14.2 million.
For the year, XRP has proven to be one of the top-performing assets, accumulating $212 million in inflows—ranking just behind Bitcoin’s $612 million and Ethereum’s $412 million.
The increasing interest has propelled XRP investment products to a landmark total of $1.2 billion in assets under management.
Several market dynamics have fueled this upward trend. The long-standing legal battle between Ripple and the US Securities and Exchange Commission (SEC) seems to be nearing a resolution, as both sides reportedly work toward a settlement.
Additionally, there are suggestions that the SEC might consider categorizing the digital asset as a commodity, potentially increasing the chances of approving an XRP-focused spot ETF product.
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