The crypto market is experiencing a significant downturn as Exchange-Traded Products (ETPs) record 17 consecutive days of outflows. Since mid-February, $1.7 billion has evaporated from crypto funds, according to CoinShares. Over the past five weeks, $6.4 billion have exited these products.
Crypto funds hit a record $6.4B outflow streak, but is the worst behind us?
Ryan Lee from #Bitget Research shares insights on $BTC’s key levels, institutional sentiment & what’s next.
Read more 👇https://t.co/o3H7KEgjCJ
— Bitget (@bitgetglobal) March 18, 2025
The complete 180 degree pivot on crypto from SEC over past 2 months has been something to behold…
Makes you wonder what exactly has been going on over past 4 years.
— Nate Geraci (@NateGeraci) March 19, 2025
After a brief respite with $876 million in outflows the previous week, liquidations resumed with greater intensity, reaching $978 million between March 10 and March 14. This marks the longest outflow period ever recorded by CoinShares. The year 2024 had initially started positively with inflows totaling $912 million.
However, institutional investors, often seen as stable pillars of the market, are becoming increasingly skittish. A strategist at CoinShares mentions a “negative sentiment fueled by macroeconomic and regulatory fears.”
ETFs = tradfi bridge to crypto…
Once tradfi crosses bridge, no going back.
— Nate Geraci (@NateGeraci) March 19, 2025
Another banger today from ETF Stream.. quite the headline, and good point. There's some structural reasons buffers harder sell there, namely population that largely assumes govt help (so not as stressed as US boomers) and advisors still mostly rely on commissions. Will take time pic.twitter.com/pxtbtjDhmr
— Eric Balchunas (@EricBalchunas) March 18, 2025
Bitcoin is bearing much of the brunt, with its ETPs losing $5.4 billion in five weeks, reducing its annual inflows to $612 million. Ether (ETH) and Solana (SOL) are also following this trend, with outflows of $175 million and $2.2 million, respectively.
Crypto outflows hit record streak
However, one exception is XRP. Its ETPs have attracted $1.8 million, a small amount compared to the global hemorrhage but a strong signal nonetheless.
Supported by favorable legal developments, such as a partial victory against the SEC in 2023, XRP shows unexpected resilience. This divergence highlights a paradox: in a plummeting market, some niches still capture trust. Investors and market watchers will need to continuously monitor these dynamics to navigate this turbulent landscape.
The crypto ETP crisis is not a collapse but a warning. Massive outflows reveal structural distrust, amplified by external factors. The burning question remains: how far will these outflows go?
Are ETPs, designed to democratize access to digital assets, becoming crisis amplifiers?
