Crypto ETPs recorded $1.67 billion in net outflows last week, with Bitcoin products accounting for most of the pullback. CoinShares said Bitcoin-focused ETPs lost $1.44 billion over the week, the largest weekly reduction this year. Over the past month, total withdrawals from Bitcoin funds reached $2.4 billion. Even after that stretch, net inflows since the start of 2024 still stand at $1.2 billion, and Bitcoin ETP assets under management total $114.6 billion.
Bitcoin products absorb the largest hit
CoinShares Head of Research James Butterfill linked the faster pace of outflows to a broader move away from risk tied to tensions involving Iran. He also said progress around the US CLARITY Act had only a limited positive effect and was not enough to offset the latest wave of withdrawals. In his view, the pattern now looks similar to the uninterrupted five-week run of negative flows seen in January and February.
ETPs are exchange-traded products, a category that includes ETFs. In crypto markets, they give investors price exposure without requiring direct ownership of the underlying assets.
Ether remains under pressure while altcoin demand narrows
Ether products also faced sustained selling. Weekly outflows from ETH funds came in at $257.3 million, pushing year-to-date losses for Ether to $346 million. Activity across altcoins was weaker as well: the number of altcoins attracting more than $1 million in inflows fell from nine in the previous week to five.
There were still a few pockets of positive demand. XRP led the group with $20.3 million in inflows, followed by Hyperliquid at $10.8 million and Near at $7.6 million.
US funds drive regional redemptions
By geography, the United States accounted for the overwhelming share of last week’s withdrawals, posting $1.63 billion in outflows. That matched the broader direction of SoSoValue data, which showed $1.42 billion in outflows from US spot Bitcoin ETFs. Germany posted $25.7 million in outflows, Sweden $6.6 million, and Hong Kong $4.5 million.
The Netherlands was the only market to record net positive flows above $1 million, with an inflow of $1.3 million.
Demand weakness, not a single catalyst, shaped the sell-off
Laser Digital’s derivatives trading desk said last week’s crypto sell-off did not come from one clear trigger. The desk added that weak equity market conditions were part of the backdrop. It also pointed to soft demand and noted that Strategy, the company led by Michael Saylor, did not buy any Bitcoin between May 18 and May 24. The firm, previously known as MicroStrategy, is widely known for holding large amounts of Bitcoin on its balance sheet.
Laser Digital said Bitcoin could stay under short-term pressure while STRC shares continue to trade below nominal value and retail participation remains weak.