- With $2.6 billion in withdrawals last week, Bitcoin took the hit as the biggest asset for global crypto ETPs.
- According to CoinShares research head, a number of variables contributed to the crypto ETP slaughter.
The largest weekly sell-off ever occurred last week for cryptocurrency exchange-traded products (ETPs), with outflows hitting a record $2.9 billion. According to CoinShares, a European crypto investment business, $3.8 billion has been wiped out in worldwide crypto ETPs due to three weeks of outflows running concurrently.
According to CoinShares research head James Butterfill, a number of variables contributed to the crypto ETP slaughter. These included the $1.5 billion Bybit breach, the US Federal Reserve’s hawkish tone, and a previous 19-week inflow streak of $29 billion.
Bitcoin ETPs Face the Wrath
He went on to say that these factors probably caused some people to cash out. And others to lose faith in the asset class. With $2.6 billion in withdrawals last week, Bitcoin took the hit as the biggest asset for global crypto ETPs, according to Butterfill. A further $3.2 billion was wiped out in its month-to-date (MTD) flows. Minimal inflows of $2.3 million were seen in short Bitcoin ETPs.
In contrast, Sui’s $15.5 million in ETP inflows previous week made it the top performer. Next came XRP-based ETPs, which received $5 million. Last week, $300 million left Ether ETPs, while $490.3 million came in so far this month. After reaching an all-time high of $173 billion in January, the current sell-off brought the total assets under management (AUM) in crypto ETPs down to $138.8 billion.
Following $22 million in the previous week, BlackRock’s iShares ETF had its biggest weekly outflow to date. With $1.3 billion leaving the funds. The declaration by US President Donald Trump, in which he highlighted five prominent cryptocurrencies, has reignited investor optimism and sent the cryptocurrency market soaring.
Trump said yesterday that the US crypto strategic reserve would comprise ADA, SOL, XRP, and other significant cryptocurrencies. Because of this, the overall worth of all cryptocurrencies rose by over $340 billion in only a few hours.
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