Cryptocurrency exchange-traded products (ETPs) have experienced the largest weekly sell-off in history, with outflows reaching a record $2.9 billion last week.
Following three consecutive weeks of outflows, global crypto ETPs have seen $3.8 billion wiped out, the European crypto investment firm CoinShares reported on March 3.
The crypto ETP bloodbath was likely driven by several factors, including the $1.5 billion Bybit hack, hawkish rhetoric by the United States Federal Reserve, as well as the preceding 19-week inflow streak of $29 billion, CoinShares research head James Butterfill said.
“These elements likely led to a mix of profit-taking and weakened sentiment toward the asset class,” he added.
Weekly crypto ETP flows since late 2024. Source: CoinShares
Bitcoin bleeds the most, while Sui is the biggest winner
As the largest asset for global crypto ETPs, Bitcoin (BTC) “bore the brunt of the weaker sentiment” with $2.6 billion of outflows last week, Butterfill reported. Its month-to-date (MTD) flows were also down $3.2 billion. Additionally, short Bitcoin ETPs saw minor inflows totaling $2.3 million.
On the other hand, Sui (SUI) was the best performer in terms of ETPs last week, seeing $15.5 million in inflows. XRP (XRP)-based ETPs followed with $5 million inflows.
Flows by asset (in millions of US dollars). Source: CoinShares
ETPs on Ether (ETH), the second largest crypto asset by market cap, saw $300 million in outflows last week, with MTD inflows amounting to $490.3 million.
With the latest sell-off, the total assets under management (AUM) in crypto ETPs dropped to $138.8 billion after rising to a historical high of $173 billion in January.
This is a developing story, and further information will be added as it becomes available.
