Investment in crypto exchange-traded products (ETPs) took a heavy hit last week, with outflows reaching $1.7 billion, according to the latest CoinShares report.
This marks the fifth consecutive week of capital flight, bringing total outflows to $6.4 billion—an all-time high. As a result, year-to-date inflows for the sector have now dropped to $912 million.
James Butterfill, CoinShares’ Head of Research, highlighted that the market has endured 17 consecutive days of outflows—the longest streak recorded since data tracking of global crypto ETPs began in 2015.
According to him, the prolonged downturn has caused total assets under management (AuM) to shrink by $48 billion to $133 billion.
US dominates Bitcoin outflows
Investors in the United States led the exodus, accounting for 93% of the total outflows last week, with $1.16 billion leaving the market.
The heavy outflows can be linked to the fact that US spot Bitcoin ETF providers, including BlackRock, Grayscale, Fidelity, and Ark 21Shares, saw outflows of $401 million, $134 million, $317 million, and $68 million, respectively.
This resulted in Bitcoin-related investment products recording $978 million in outflows, bringing their five-week flows to a negative $5.4 billion.
Short-Bitcoin positions also saw sell-offs, with investors withdrawing $3.6 million amid Bitcoin’s sideways price action.
Meanwhile, Ethereum and Solana investment products experienced outflows of $175 million and $2.2 million, respectively. Blockchain equity funds also suffered, with $40 million exiting the sector.
Butterfill pointed out that Binance faced a near-total wipeout of its AuM after a seed investor’s departure, leaving only $15 million under management.
XRP defies trend
XRP stood out as a rare bright spot, attracting $1.8 million in fresh inflows last week.
This brought its monthly total to $7.4 million, ranking it second only to Solana, which led with $14.2 million in inflows.
For the year, XRP remains one of the best-performing assets, with $212 million in inflows—trailing only Bitcoin’s $612 million and Ethereum’s $412 million.
The rising demand has driven XRP investment products to a record high of $1.2 billion in total assets under management.
Several market factors have fueled this momentum. The long-running legal dispute between Ripple and the US Securities and Exchange Commission (SEC) appears to be approaching a resolution, with both parties reportedly working toward a settlement.
At the same time, reports also suggest that the SEC may consider classifying the digital asset as a commodity, which could boost the likelihood of approving an XRP-focused spot ETF product.
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