Largest Outflow in Crypto Investment Products Since February

Historical Outflow from Crypto Investment Products:

Crypto investment products have recorded their largest weekly outflow since February, due to a decrease in risk appetite in global markets. According to the latest data, approximately $2 billion in outflows occurred this week, showing an increase of about 71% compared to the previous week's $1.17 billion, marking the third consecutive week of outflows.

CoinShares Report and Reasons for Outflows

In the report published by CoinShares, it was stated that total outflows in crypto exchange-traded products (ETPs) have reached a cumulative $3.2 billion. CoinShares' Head of Research, James Butterfill, associates this situation with uncertainties in monetary policies and sales made by crypto whales.

Decline in Assets Under Management of ETPs

Following the recent outflows, the total assets under management (AUM) in crypto ETPs have fallen to $191 billion. This amount represents a 27% decline from the October peak of $264 billion and highlights the overall sensitivity in the markets.

Outflows by Country and Notable Data

According to the research, 97% of the outflows, amounting to $1.97 billion, were from the United States, while Germany constituted an exception with an inflow of $13.2 million. Additionally, Switzerland and Sweden recorded outflows of $39.9 million and $21.3 million, respectively. Hong Kong, Canada, and Australia experienced a combined outflow of $23.9 million.

Impact on Bitcoin and Ethereum

The outflows have significantly affected Bitcoin and Ethereum-based ETPs. Bitcoin-based ETPs experienced an outflow of approximately $1.4 billion last week, which constitutes about 2% of their total AUM. Similarly, Ethereum ETPs have lost approximately $700 million, or 4% of their total assets.

Small crypto ETPs have also faced similar effects, with Solana and XRP ETPs recording losses of $8.3 million and $15.5 million, respectively. These developments indicate an important period that investors need to pay attention to.