Why Crypto ETPs Are Losing Money Faster Than a Sinking Ship! 🚢💸

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Well now, gather ’round, folks, for I bring tidings from the wild and woolly world of cryptocurrency exchange-traded products (ETPs). It seems these poor souls have been on a losing streak longer than a Mississippi summer, recording a fourth straight week of outflows, with a staggering $876 million evaporating into thin air just last week. 💰💨

After a record-breaking week of outflows that would make even the most stoic of investors weep—$2.9 billion, mind you—these crypto ETPs have continued their downward spiral, bringing the four-week total to a jaw-dropping $4.75 billion, as reported by our friends at CoinShares on this fine March 10th. If this keeps up, we might as well start calling it a crypto drought! 🌵

Now, while the pace of these outflows has slowed to a crawl, investor sentiment remains as gloomy as a rain-soaked Sunday, according to James Butterfill, the head honcho of research over at CoinShares. He even suggested that the market is showing signs of capitulation—whatever that means! Sounds like a fancy way of saying folks are throwing in the towel. 🥊

Bitcoin ETP selling accounted for 86% of total outflows

And wouldn’t you know it, Bitcoin (BTC) ETPs are leading the charge in this exodus, accounting for a whopping $756 million, or 85% of last week’s total. Short-Bitcoin ETPs also joined the party, seeing outflows of $19.8 million—the most since December 2024. Talk about a party no one wants to attend! 🎉

With cumulative outflows reaching $4.75 billion over the past four weeks, the year-to-date inflows have plummeted to a mere $2.6 billion. It’s enough to make a grown man cry! 😢

Total assets under management (AUM) have taken a nosedive, declining by $39 billion to a paltry $142 billion—the lowest point since mid-November 2024. This decline is driven by both negative price movements and sustained outflows, as Butterfill so eloquently noted. It’s like watching a ship sink while the captain insists everything is just fine! 🚢

Most altcoins shared bleeding sentiment

But wait, there’s more! This bearish sentiment has spread like wildfire among a whole host of altcoins, with Ether (ETH) ETPs seeing $89 million of outflows. It’s a veritable bloodbath out there! 🩸

Tron (TRX) and Aave (AAVE) also found themselves among the most notable ETP losers, with outflows of $32 million and $2.4 million, respectively. If this keeps up, they might as well start handing out life jackets! 🛟

On the flip side, Solana (SOL), XRP (XRP), and Sui (SUI) are still managing to attract some inflows, totaling $16.4 million, $5.6 million, and $2.7 million, respectively. It seems some folks are still willing to take a gamble, bless their hearts! 🎲

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2025-03-10 13:23