Crypto ETPs See Record Outflow of $1.4 Billion as Bitcoin’s Decline Fuels Institutional Hesitation

Digital asset investment products witnessed a significant outflow of $1.43 billion last week, the largest since March, primarily driven by a dramatic exodus of Bitcoin from exchange-traded products (ETPs). This marked a shift in investor sentiment towards both Bitcoin and Ethereum as institutional investors adopted more cautious approaches following months of market volatility. Bitcoin saw a staggering $1 Billion exit while Ethereum showed resilience with only $440 Million in outflows, highlighting the changing dynamics between these two dominant cryptocurrencies. 38 billion dollars worth of cryptocurrency ETP trading volume increased this week reflecting heightened investor activity and strategic positioning. This suggests that institutional investors are actively managing their cryptocurrency exposures rather than adopting passive investment strategies. The divergence in flows between Bitcoin and Ethereum suggests a growing preference for alternative digital assets, particularly Ethereum, as institutions seek to diversify their portfolios beyond the largest cryptocurrencies by market capitalization.