Cryptocurrency exchange-traded products (ETPs) have experienced a significant wave of selling, marking the fifth consecutive week of outflows. The past trading week saw an accelerated liquidation trend, with investors pulling $1.7 billion from the market. This follows the previous week’s outflows of $876 million, bringing the total five-week outflows to a staggering $6.4 billion, according to a report from CoinShares on March 17.
The ongoing sell-off has set a new record, marking the 17th consecutive day of outflows. This represents the longest continuous negative streak since CoinShares began tracking market flows in 2015. Despite this persistent selling pressure, year-to-date (YTD) inflows remain positive, totaling $912 million.
Bitcoin ETPs Bear the Brunt of Outflows
Bitcoin ETPs have been the most affected by the sell-off. The first week of March saw $756 million in outflows, which escalated to $978 million in the following trading week from March 10 to March 14. The cumulative five-week outflows for Bitcoin ETPs now stand at $5.4 billion, leaving only $612 million in YTD inflows by March 14.
Both Ether (ETH) and Solana (SOL) ETPs also saw notable sell-offs, recording outflows of $175 million and $2.2 million, respectively. However, in contrast to the broader trend, XRP ETPs continued to attract investment, with inflows totaling $1.8 million over the past week.
Regional Outflows and Key Issuers Affected
Among ETP providers, European crypto ETP firm 21Shares recorded the largest outflows last week, amounting to $534 million. While Europe saw substantial selling, the United States remained the dominant region for outflows, with investors withdrawing $1.2 billion from its crypto ETP market.
BlackRock, one of the largest crypto holders, experienced significant outflows as well. The investment giant saw $401 million leave its ETPs in the past week, pushing its month-to-date outflows to $594 million.
A Few Issuers Still Holding Inflows
Despite the broad market trend of liquidations, ProShares emerged as one of the few issuers maintaining inflows. The firm recorded $2 million in inflows month-to-date (MTD) and remained one of the three major issuers to hold positive YTD inflows as of March 14. Other issuers managing to retain positive YTD inflows include BlackRock and ARK Invest.
Additionally, Binance has seen a drastic reduction in its assets under management due to a seed investor exit, leaving it with only $15 million in assets, according to CoinShares’ James Butterfill.
