Crypto ETPs Crash: $2.9B Outflows

Last week witnessed the largest single-week sell-off ever recorded in cryptocurrency exchange-traded products (ETPs), with a staggering $2.9 billion in outflows. This follows three consecutive weeks of outflows, totaling $3.8 billion in losses for global crypto ETPs, according to a March 3rd report from European crypto investment firm CoinShares.

Factors Behind the Crypto ETP Sell-Off

Several factors likely contributed to this dramatic downturn. CoinShares research head James Butterfill points to the $1.5 billion Bybit hack, hawkish statements from the US Federal Reserve, and the preceding 19-week inflow streak of $29 billion as key elements. This combination, he suggests, fueled profit-taking and eroded overall market confidence.

Bitcoin Takes the Biggest Hit

Bitcoin (BTC), the dominant asset in global crypto ETPs, suffered the most significant losses, experiencing $2.6 billion in outflows last week and a month-to-date outflow of $3.2 billion. Short Bitcoin ETPs saw minor inflows of $2.3 million.

Sui and XRP Show Resilience

In contrast, Sui (SUI) performed exceptionally well, attracting $15.5 million in inflows. XRP-based ETPs also saw positive inflows, totaling $5 million.

Ether (ETH), the second-largest cryptocurrency, experienced outflows of $300 million last week, although month-to-date inflows reached $490.3 million.

The sell-off reduced the total assets under management (AUM) in crypto ETPs to $138.8 billion, down from a January high of $173 billion.

Note: This is a developing story and will be updated as new information becomes available.

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