The cryptocurrency market has been in the red over the past week, with Bitcoin seemingly determined to settle below the symbolic $100,000 level. This period has just seen a record level of outflows from its ETPs, estimated at over $2 billion.
Crypto Market: $2 Billion in Weekly Outflows
The cryptocurrency market is currently experiencing a significant decline, clearly confirmed by Bitcoin’s recent drop below the symbolic $100,000 threshold at the end of last week, with the BTC price currently hovering around the $96,000 support level.
This situation has also led to significant declines among altcoins, with the current top 10 showing negative returns ranging from -6.5% for BNB to -15% for Solana’s SOL at the time of writing.
This provided an opportunity for the analytics firm Coinshares to take stock of the situation as part of its latest weekly report on flows recorded by Exchange-Traded Products (ETPs) linked to the cryptocurrency market—that is, all exchange-traded financial products, including ETFs.
Needless to say, the results for last week are not good, as the amount of outflows recorded exceeded the $2 billion mark, making them the largest outflows since last February.
Crypto ETPs Record $2 Billion in Weekly Outflows
Crypto-asset investment products recorded outflows totaling $2 billion last week, the largest since February of this year. This marks the third consecutive week of outflows, bringing the total to $3.2 billion.
Coinshares
The United States accounts for 97% of these outflows
According to Coinshares analysts, the historically high level of these outflows is directly attributable to “uncertainty surrounding current monetary policy” in the United States, as well as what they identify as “sales by crypto-native whales”
As a result, the U.S. market alone accounts for 97% of these weekly outflows ($1.97 billion), while “Germany stands out as an exception with $13.2 million in inflows despite a negative global backdrop.”
In detail, it comes as no surprise that Bitcoin and Ethereum dominate, with estimated total outflows of $1.38 billion and $689 million, respectively, while multi-asset funds are simultaneously recording positive inflows.
Flow of outflows recorded by cryptocurrency
The current downturn in the cryptocurrency market has also “led to a decrease in assets under management (AuM) held by crypto ETPs, falling from a peak of $264 billion in early October to $191 billion, a 27% decline.”
As for traders, short positions on Bitcoin now dominate the trend, with a total of $18.1 million in inflows over the past week.
