Outflows from crypto exchange-traded products (ETPs) reached $455 million over the previous nine weeks, according to a report from asset manager CoinShares. Outflows from ETPs generally indicate negative sentiment toward cryptocurrencies.
Last week, outflows totalled US$54m.
There have been outflows for 8 out of the last 9 weeks that aggregate to US$455m.
— CoinShares (@CoinSharesCo) September 18, 2023
The week leading up to Sept. 18 saw outflows of $54 million — capping off nine weeks in which only a single week saw inflows. Bitcoin (BTC) saw the biggest drawdown from all exchange-traded products and was responsible for 85% of all outflows from these funds. Last week, over $45 million worth of Bitcoin was sold into the market by ETPs.
Ether (ETH) funds were also not spared in the deluge of selling. They saw outflows of approximately $5 million last week.
CoinShares also provided data about the regional origin of crypto ETP outflows. The United States was responsible for 77% of the outflows, with Germany, Canada and Sweden also having caused a sizable percentage of the outflows.
Crypto ETPs offer an easier way for investors with traditional financial accounts to invest in digital assets. However, the issuance of a spot Bitcoin exchange-traded fund has faced numerous regulatory and legal barriers in the United States. In March, the Securities and Exchange Commission (SEC) denied VanEck’s proposal for a Bitcoin Trust. On Aug. 11, a U.S. federal appeals court ruled that the SEC had been “arbitrary and capricious” in denying a Bitcoin ETP proposal from Grayscale.