Crypto ETPs record $2.9B outflows, Bitcoin hit hardest — CoinShares

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.

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.

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.