Crypto ETPs Experience Record $2.9 Billion Outflow Amid Market Shift
Crypto exchange-traded products (ETPs) experienced record sell-offs, with investors withdrawing approximately $2.9 billion last week, as reported by CoinShares.
- Total outflows now stand at $3.8 billion over three weeks.
- Factors contributing to the sell-off include a $1.5 billion hack on Bybit and the Federal Reserve's hawkish monetary policy.
- Prior to this downturn, ETPs had 19 weeks of consecutive inflows.
- Bitcoin (BTC) accounted for $2.6 billion of the outflows, while short Bitcoin ETPs saw minimal inflows of $2.3 million.
- Sui (SUI) was a standout performer with $15.5 million in inflows, followed by XRP (XRP).
- BlackRock's iShares Bitcoin Trust (IBIT) faced significant withdrawals of $1.3 billion, the highest since its launch.
- CME Bitcoin futures open interest dropped from 170,000 BTC to 140,000 BTC, indicating potential changes in institutional positioning.
- The yield on three-month futures is 7%, slightly above the 4% yield of short-term U.S. Treasuries.
- Analysts suggest hedge funds may be unwinding positions in bitcoin derivatives in favor of safer assets.