Crypto ETPs Have Recorded 17 Consecutive Days Of Outflows

The crypto landscape is wavering. Exchange-traded products (ETPs), those highly praised investment vehicles, are experiencing an unprecedented bleeding. Since mid-February, $1.7 billion has evaporated from crypto funds, according to CoinShares. A series of 17 consecutive days of outflows. Behind these brutal figures lie complex dynamics: increased mistrust, cascading reactions, and surprising paradoxes.

Crypto ETPs: The Hemorrhage That Defies Records

Crypto ETPs are going through a prolonged storm. $6.4 billion have exited these products over five weeks, according to the report from March 17.

After a slight calm (-$876 million the previous week), liquidations resumed with greater intensity (-$978 million between March 10 and March 14). A movement that recalls historical crashes, but with a particularity: this outflow is the longest ever recorded by CoinShares.

Yet, the year 2024 had started well. Inflows remain positive at +$912 million since January.

But this figure masks a reality: institutional investors, often seen as stable pillars, seem to be dizzy. James Butterfill, a strategist at CoinShares, mentions a “negative sentiment fueled by macroeconomic and regulatory fears”.

The burning question: how far will the outflows go? Are ETPs, designed to democratize access to digital assets, turning into a crisis amplifier? The answers lie in the sectoral details.

Bitcoin on the Front Line, XRP in Resistance: The Great Gap of Cryptos

The king Bitcoin is paying in cash. Its ETPs lost $5.4 billion in five weeks, reducing annual inflows to $612 million. A dizzying drop, symbolic of a market where liquidity is drying up. BTC, often perceived as a safe haven, struggles to reassure. High interest rates, geopolitical uncertainties, and rumors of strict regulations weigh heavily.

Ether (ETH) and Solana (SOL) follow the trend, with respective outflows of $175 million and -$2.2 million. Proof that even major altcoins are not spared. But one exception raises questions: XRP. Its ETPs attracted +$1.8 million, a drop in the bucket compared to the global hemorrhage, but a strong signal. Supported by favorable legal developments (like the partial victory against the SEC in 2023), XRP embodies unexpected resistance.

This divergence raises a paradox: in a plummeting market, some niches still capture trust. Are investors looking for alternatives less correlated to BTC? Or are they simply playing the undervalued asset card?

The crypto ETP crisis is not a collapse, but a warning. Massive outflows reveal a structural distrust, amplified by external factors. However, analysts remain optimistic.