The series of exits in investment products based on crypto assets continued last week. According to CoinShares data, $1.67 billion was withdrawn from crypto ETPs. Thus, the total outflow in the last three weeks reached 4.21 billion dollars. Total assets under management fell to $141 billion, the lowest level since the beginning of April.
Bitcoin led the way in outflows
The biggest outflow on a weekly basis was recorded in Bitcoin-focused ETPs. While $1.44 billion came out of these products, this figure was the highest weekly settlement of the year so far. In total, monthly losses in Bitcoin funds reached $2.4 billion. On the other hand, net inflow has remained at 1.2 billion dollars since the beginning of the year. Assets under management in Bitcoin products also decreased to $114.6 billion.
Mini dictionary: ETP is the general name of investment products traded on the stock exchange. ETF is one of the most well-known subtypes of this group. Crypto ETPs offer investors access to price movement without directly owning the underlying asset.
CoinShares Head of Research James Butterfill attributed the acceleration of outflows to the Iran-related risk aversion trend. Butterfill stated that the limited supportive effect created by the CLARITY Act process regarding the crypto market in the USA was insufficient against this wave.
James Butterfill stated that the latest chart reminds us of the five-week uninterrupted negative series in January and February, and that the risk aversion tendency in the market is dominant again.
The chart remained weak in Ether and altcoins
Selling pressure continued in Ether funds. Last week, there was an outflow of 257.3 million dollars from these products. Thus, the total loss of Ether funds since the beginning of the year increased to 346 million dollars.
On the altcoin side, participation has weakened significantly. According to CoinShares data, the number of assets that saw inflows over $1 million fell to five, from nine in the previous week. On the positive side, XRP stood out again and recorded an inflow of $20.3 million. followed by $10.8 million. hyperliquid and Near followed with $7.6 million.
| Presence | Weekly stream |
|---|---|
| Bitcoin | $1.44 billion outflow |
| ether | $257.3 million exit |
| XRP | $20.3 million entry |
| hyperliquid | $10.8 million entry |
| Near | $7.6 million entry |
USA came to the fore in regional exits
The main source of outflows on a country basis was the USA. Last week, outflow from the USA reached 1.63 billion dollars. This chart also coincided with the $1.42 billion outflow from US spot Bitcoin ETFs seen in SoSoValue data. An outflow of $25.7 million was recorded in Germany, $6.6 million in Sweden and $4.5 million in Hong Kong. The Netherlands was the only country to see a positive flow of over $1 million, with an inflow of $1.3 million.
| Country | Weekly stream |
|---|---|
| USA | $1.63 billion outflow |
| Germany | $25.7 million exit |
| Swedish | $6.6 million exit |
| Hong Kong | $4.5 million exit |
| Holland | $1.3 million entry |
Demand weakness increased selling pressure
According to Laser Digital’s derivatives trading desk, last week’s crypto sell-off occurred without a single obvious trigger and was influenced by weak equity markets. The institution pointed out the lack of demand and reminded that Michael Saylor’s company Strategy did not purchase Bitcoin between May 18 and May 24. Strategy is a US-based company, previously known as MicroStrategy, which stands out for holding a large amount of Bitcoin on its balance sheet.
Laser Digital trading desk stated that Bitcoin is expected to remain under pressure in the short term as STRC stock continues to trade below its face value and retail investor interest remains weak.
