Crypto ETPs See Record Outflows, Marking Longest Negative Streak in History

Cryptocurrency exchange-traded products (ETPs) have faced significant outflows in recent weeks, with the latest report showing a fifth consecutive week of sell-offs. Last week, $1.7 billion was pulled from the market, marking a substantial acceleration in outflows compared to the previous week’s $876 million. Over the past five weeks, a total of $6.4 billion has exited the market, continuing a trend of investor caution in the crypto space.

According to CoinShares, the ongoing outflows have now stretched to 17 consecutive days, the longest negative streak since CoinShares began tracking crypto ETP flows in 2015. James Butterfill, head of research at CoinShares, highlighted that despite these continuous outflows, year-to-date (YTD) inflows for 2025 remain positive, with $912 million still entering the market. This suggests that, despite the prolonged sell-offs, some investors are still showing confidence in the long-term prospects of cryptocurrencies.

Bitcoin ETPs Lead Outflows

Bitcoin (BTC) ETPs have been the hardest hit in the latest round of selling, with $5.4 billion in outflows over the past five weeks. After $756 million left Bitcoin ETPs in the first week of March, outflows continued to accelerate, with another $978 million being withdrawn between March 10 and March 14. The continued selling pressure on Bitcoin ETPs reflects broader market uncertainty, as Bitcoin’s price has faced volatility, dipping to multi-month lows.

Other cryptocurrencies like Ether (ETH) and Solana (SOL) also saw significant outflows. Ether ETPs experienced $175 million in outflows, while Solana ETPs saw $2.2 million exit the market. In contrast, XRP ETPs bucked the trend, with a modest $1.8 million in inflows, showcasing some investor confidence in specific altcoins.

European crypto ETP provider 21Shares saw the largest outflows last week, with $534 million pulled from its products. Despite these significant losses in Europe, the U.S. region led in total outflows, with $1.2 billion leaving its crypto ETP market. However, ProShares, a major issuer in the U.S., was a notable exception, with $2 million in inflows month-to-date (MTD) and maintaining positive YTD inflows alongside other firms like BlackRock and ARK Invest.

Binance’s Crypto ETP Struggles

Binance, one of the largest cryptocurrency exchanges, saw almost all of its assets under management wiped out following an exit by a seed investor, leaving only $15 million remaining under management. This underscores the ongoing struggles faced by major crypto firms, with investor sentiment remaining fragile amidst regulatory uncertainty and market volatility.

The crypto ETP market has faced a challenging period, with continuous outflows highlighting a cautious mood among investors. Despite this, there are still some signs of resilience, particularly from firms like ProShares, BlackRock, and ARK Invest, which have managed to maintain inflows. As we move further into 2025, all eyes will be on whether these outflows continue or if the market can find a new equilibrium amid ongoing volatility.