Cryptocurrency exchange-traded products (ETPs) faced another challenging week, with outflows totaling $876 million for the week ending March 10. This marks the fourth consecutive week of outflows, following a record $2.9 billion withdrawal the previous week. Over the last month, total outflows have reached $4.75 billion, significantly reducing year-to-date inflows to $2.6 billion. Despite a slight slowdown in the rate of outflows, market sentiment remains negative, with analysts warning that the market may be approaching capitulation levels.
Bitcoin Leads the Outflows
Bitcoin ETPs were the primary driver of withdrawals, accounting for $756 million, or 86% of total outflows. Short-Bitcoin ETPs also saw their largest outflows since December 2024, with $19.8 million in withdrawals. As a result, the total assets under management (AUM) for crypto ETPs have fallen by $39 billion, bringing the total down to $142 billion, its lowest level since mid-November 2024.
Altcoins Experience Mixed Performance
Ethereum ETPs recorded $89 million in outflows, while other altcoins also saw significant withdrawals:
- Tron: $32 million in outflows
- Aave: $2.4 million in outflows
However, some digital assets managed to attract investments despite the broader negative trend:
- Solana (SOL): $16.4 million in inflows
- XRP: $5.6 million in inflows
- Sui: $2.7 million in inflows
Major ETP Issuers Face Significant Losses
Among major crypto ETP issuers, Fidelity Investments recorded the largest outflows, with $201 million withdrawn in the past week, bringing its year-to-date losses to $159 million. BlackRock’s iShares ETFs followed closely behind, with $193 million in outflows. Despite the decline, BlackRock remains the largest crypto ETP holder, with $52.8 billion in AUM and $3 billion in year-to-date outflows.
Other issuers also recorded notable outflows:
- ARK Invest & 21Shares: $164 million in combined outflows, though their year-to-date flows remain positive at $110 million.
- ProShares was one of the few issuers to see inflows, gaining $15 million over the past week.
Market Sentiment Remains Bearish
The persistent outflows and declining AUM reflect ongoing caution among investors as the broader crypto market continues to struggle. While some assets like Solana, XRP, and Sui are still attracting capital, overall sentiment remains bearish. Analysts suggest that continued economic uncertainty and evolving regulatory frameworks may play a crucial role in determining whether the market stabilizes or experiences further declines in the coming weeks.
