Selling pressure in crypto exchange-traded products showed signs of cooling last week, even as funds recorded another round of net outflows, suggesting investor sentiment may be nearing an inflection point.
Crypto ETP Outflows Decline Sharply
Crypto ETPs posted $187 million in net outflows over the past week, marking a third consecutive week of withdrawals. However, the pace of selling slowed significantly compared with the $3.43 billion that exited the market over the prior two weeks combined. The easing coincided with stabilization in digital asset prices following a steep correction.
Bitcoin prices briefly fell to around $60,000, their lowest level since late 2024, before recovering. Historically, changes in the speed of fund flows — rather than their absolute direction — have often provided early signals of shifting market sentiment.
Bitcoin Products Lead Losses While XRP Sees Inflows
Bitcoin-linked ETPs accounted for the bulk of last week’s losses, with outflows totaling roughly $264 million. Spot Bitcoin ETFs were a major contributor, representing more than $300 million in net withdrawals.
In contrast, XRP-focused products led weekly inflows, attracting about $63 million. Ether and Solana ETPs also posted modest gains, indicating selective interest in certain altcoins despite broader caution.
Record Trading Volume Signals Possible Turning Point
While outflows persisted, trading activity surged. Weekly crypto ETP trading volume reached a record $63 billion, surpassing previous highs. Total assets under management across crypto ETPs fell to around $129 billion, the lowest level in nearly a year.
Analysts note that elevated volume combined with slowing outflows may point to a potential market bottom forming.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.