Bitcoin ETPs Bear the Brunt of the Sell-Off as Altcoin ETPs Attract New Money

Latest crypto news reports saw Bitcoin ETPs bearing the brunt of the sell-off. Altcoin ETPs recorded are attracting new money

Bitcoin investment products faced the brunt of the sell-off, suffering outflows of $571 million last week, which constituted the bulk of the $508 million total crypto ETP losses, as per the latest report from CoinShares on February 24, 2025.

This trend, exclusive to Bitcoin, highlighted investor caution, which could be linked to macroeconomic factors such as inflation and monetary policy uncertainty post-inauguration, according to CoinShares’ analysis.

In contrast, altcoin ETPs recorded net inflows, with XRP, Solana, Ether, and Sui ETPs attracting $38 million, $8.9 million, $3.7 million, and $1.5 million, respectively.

Solana, Ether, and Sui ETPs saw inflows of $8.9 million, $3.7 million, and $1.5 million, respectively, last week.

Meanwhile, Bitcoin ETPs suffered $571 million in outflows, driving total crypto ETP losses to $508 million, following outflows of $415 million the previous week.

This contrast suggests a growing interest in altcoins, possibly due to perceived growth potential, as highlighted by the report.

XRP ETPs led altcoin gains with $38 million in inflows last week, part of a total inflow of $819 million since November 2024.

This surge in XRP ETP inflows is tied to investor hopes that the SEC will resolve its lawsuits with Ripple and approve a spot XRP ETF, according to CoinShares’ analysis.

ProShares Shines with $38M Inflows as Crypto ETP Giants Bleed

The past trading week marked a rare occurrence for BlackRock's iShares ETFs, which saw losses of $22 million, according to CoinShares’ issuer flow data.

However, ProShares stood out with $38 million in inflows, making it one of the few major US ETPs to avoid outflows.

On the other hand, Grayscale Investments and Fidelity Digital Assets recorded the largest outflows, amounting to $170 million and $166 million, respectively, highlighting divergent strategies among providers.

An interesting detail to note is ProShares’ ability to attract $38 million in inflows amidst the broader outflows, which could be an indication of strong investor confidence in their ETP offerings.

This resilience, not often highlighted in broader market narratives, adds a layer of complexity to understanding investor behavior in volatile times.

Regionally, the US led with $560 million in outflows, contrasting with Europe’s $46.3 million in inflows, led by Germany ($30.5 million) and Switzerland ($15.8 million).