Crypto ETPs see $508M outflow amid market caution

Cryptocurrency exchange-traded products (ETPs) experienced $508 million in outflows last week, according to digital asset investment firm CoinShares.

This continues a trend of investor pullback, following $415 million in outflows the previous week.

The total outflows for the past two weeks reached $924 million.

According to CoinShares research head James Butterfill, the increased selling pressure in the crypto ETP sector is attributed to investors exercising caution following the U.S. presidential inauguration and subsequent market uncertainty around trade tariffs, inflation, and monetary policy.

Bitcoin (CRYPTO:BTC) investment products experienced the most losses, accounting for $571 million in outflows.

In contrast, altcoin ETPs recorded inflows or zero outflows, with XRP (CRYPTO:XRP) ETPs leading with $38 million in inflows.

Since November 2024, XRP ETPs have seen $819 million in inflows, reflecting investor hopes that the U.S. Securities and Exchange Commission (SEC) will drop its lawsuit against Ripple and approve a spot XRP ETF.

Solana (CRYPTO:SOL), Ether (CRYPTO:ETH), and Sui (CRYPTO:SUI) followed with inflows of $8.9 million, $3.7 million, and $1.5 million, respectively.

BlackRock’s iShares ETFs experienced losses of $22 million.

ProShares ETFs were among the only major U.S. ETPs that did not post losses last week, seeing $38 million of inflows, according to CoinShares.

Grayscale Investments and Fidelity Digital Assets saw the largest outflows, amounting to $170 million and $166 million, respectively.

The majority of crypto ETP trading came from the U.S., which saw $560 million in outflows.

Europe continued to see steady inflows, with Germany and Switzerland leading inflows with $30.5 million and $15.8 million, respectively.