Crypto ETPs Face Record Outflows as XRP Resists Market Trend

By: Eliza Bennet

The cryptocurrency market witnessed a significant upheaval recently as exchange-traded products (ETPs) observed their longest streak of outflows since 2015. For the 17th consecutive day, substantial capital was taken out of the market, marking the fifth straight week of negative investor sentiment. In total, $1.7 billion exited the crypto ETPs over the past week alone, pushing the five-week outflows to an eye-watering $6.4 billion. This downturn has reduced the total assets under management (AuM) by $48 billion, leaving the total at approximately $133 billion.

The majority of these outflows were driven by US investors. They accounted for 93% of the recent capital flight, equivalent to $1.16 billion. Major US spot Bitcoin ETF providers such as BlackRock, Grayscale, Fidelity, and Ark 21Shares were not spared, experiencing significant withdrawals. As a result, investment products related to Bitcoin recorded $978 million in outflows, bringing their five-week total to a negative $5.4 billion. Ethereum and Solana-related products also saw outflows of $175 million and $2.2 million, respectively. Among other affected sectors were blockchain equity funds, which suffered $40 million in outflows.

Despite the prevalent downturn, XRP emerged as a silver lining in the crypto landscape, attracting $1.8 million in inflows last week. This brought XRP's monthly inflows to $7.4 million, second only to Solana, which recorded the highest inflows at $14.2 million. Year-to-date figures place XRP in a favorable position with $212 million in inflows, following Bitcoin and Ethereum, which accumulated $612 million and $412 million, respectively. This notable performance is bolstered by ongoing developments regarding Ripple’s legal case with the SEC, which may soon reach a favorable settlement potentially classifying XRP as a commodity. Such a move could open doors for an XRP-focused spot ETF product, further driving investment interest.