Crypto ETPs Post $1.4B Weekly Losses as Bitcoin and Ether Slide

TLDR

• Crypto ETPs experienced $1.4 billion in outflows last week, ending a two-week inflow streak.
• Bitcoin dropped from over $116,000 to $112,000, leading to more than $1 billion in ETP outflows.
• Ether fell below $4,100 midweek and recorded the second-largest weekly outflows from Ether ETFs.
• A shift in investor sentiment followed Jerome Powell’s dovish tone at the Jackson Hole Symposium.
• Altcoin ETPs showed mixed results with XRP and Solana seeing inflows while Sui and Toncoin faced losses.

Last week, global cryptocurrency investment products saw heavy outflows of $1.43 billion. This marked a sharp reversal following two weeks of inflows totaling $4.3 billion. The losses coincided with falling Bitcoin and Ether prices, impacting market confidence.

Crypto ETPs Hit by Bitcoin Losses

Crypto ETPs focused on Bitcoin suffered significant investor exits, exceeding $1 billion in outflows last week. The decline followed Bitcoin’s price drop from over $116,000 on August 18 to $112,000 by Friday. This movement weakened momentum and contributed to the negative shift in flows.

James Butterfill of CoinShares attributed the decline to policy uncertainty. “Investors reacted strongly to monetary policy signals, pulling $2 billion early in the week,” he noted. Crypto ETPs saw improved sentiment by Friday, with $594 million re-entering after Powell’s Jackson Hole address.

Despite the partial recovery, Bitcoin ETPs continued to show weakness in fund flows. Month-to-date figures reveal $1 billion in net Bitcoin outflows. The change marks a stark contrast to earlier inflow trends for crypto ETPs linked to Bitcoin.

Ether ETPs Suffer Record Weekly Losses

Ether-focused crypto ETPs also experienced major outflows amid price volatility. After starting at $4,250, ether fell below $4,100 midweek, intensifying withdrawal pressures. By Tuesday alone, according to SoSoValue, Ether spot ETFs saw nearly $430 million in outflows.

Despite some price recovery later in the week, Ether ETPs posted total outflows of $440 million. This marked the second-largest weekly decline on record for Ether ETPs. CoinShares highlighted that policy shifts and midweek sentiment changes played key roles.

Butterfill emphasized the impact of broader investor sentiment. “The tone shifted midweek, helping Ether rebound slightly,” he explained. Yet, crypto ETPs continued facing structural outflows due to price instability and market caution.

Mixed Results for Altcoin ETPs

While Bitcoin and Ether dominated outflow figures, altcoin-related crypto ETPs presented mixed trends. XRP attracted $25 million in inflows, indicating selective investor interest. Solana ETPs followed with $12 million in gains over the week.

In contrast, Sui and Toncoin ETPs saw $13 million and $1.5 million in outflows, respectively. These figures signal uneven confidence across altcoin segments. Crypto ETPs in the altcoin space show varying performance amid broader market shifts.

Crypto ETPs now show diverging trends year-to-date, with Ethereum-linked products gaining 26% of AUM versus Bitcoin’s 11%.

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