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.
Crypto exchange-traded products are designed to track crypto prices. When shares of these funds fall below their target prices, they sell off cryptocurrencies, causing outflows.
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
Ether
Despite these outflows, a few ETPs representing altcoins did well last week. Solana
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.