Crypto ETPs See Major Outflows Amid Investor Caution
Crypto ETPs Experience Substantial Outflows
Cryptocurrency exchange-traded products (ETPs) saw significant outflows, with $508 million withdrawn in the past week, adding to the $415 million from the previous week. This trend reflects investor caution amid concerns over trade tariffs, inflation, and monetary policy post-US presidential inauguration, as highlighted by CoinShares research head James Butterfill.
Bitcoin ETPs Bear the Brunt of Outflows
Bitcoin ETPs, representing the largest crypto asset, experienced $571 million in outflows last week. In contrast, altcoin ETPs, such as XRP, saw inflows, with XRP ETPs leading at $38 million. Since November 2024, XRP ETPs have attracted $819 million, driven by optimism over the potential resolution of the SEC lawsuit against Ripple and the approval of a spot XRP ETF.
Mixed Performance Across ETP Providers
BlackRock's iShares ETFs saw $22 million in outflows, a rare loss, while ProShares ETFs stood out with $38 million in inflows. Grayscale Investments and Fidelity Digital Assets faced the largest outflows at $170 million and $166 million, respectively.
Regional Trends Highlight Europe's Resilience
The US dominated crypto ETP trading with $560 million in outflows, while Europe saw steady inflows, led by Germany ($30.5 million) and Switzerland ($15.8 million). This regional divergence underscores varying investor sentiment across markets.
This summary captures the key dynamics shaping the crypto ETP market, emphasizing the shift in investor preferences and regional disparities in investment behavior.
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