Coin Market

Crypto ETP outflows, explained — What investors need to know

Published

3 weeks ago

April 1, 2025

What are crypto ETP outflows?

Crypto ETPs give exposure to digital assets via traditional financial instruments. When more money exits these products rather than entering them, it is known as an “outflow” rather than an “inflow” — i.e., more people are selling than buying.

Crypto exchange-traded products (ETPs) hold crypto assets as their underlying commodity. The goal is for them to provide an exchange-traded investment for investors who want exposure to crypto without directly buying the digital assets.

Many investors, particularly institutions, prefer this method, as it opens up crypto investing within traditional financial instruments. There is no need to venture into unregulated market areas or take responsibility for the security and safety of crypto assets.

There are several types of crypto ETPs available, including exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and exchange-traded notes (ETNs). Most famously, Bitcoin ETFs were approved and began trading in January 2024. These crypto ETPs are widely traded and often account for the majority of trading volumes — both inflows and outflows.

If you’ve been following the price action of cryptocurrency like Bitcoin (BTC), then you’ll likely have seen stories about crypto ETP outflows.

So, what are crypto ETP outflows?

This occurs when money flows out of these investment products, indicating that the market is eager to sell off positions. The reasons for this can vary, including profit-taking, negative market sentiment or risk adjustment.

Crypto ETP investment trends

These crypto fund outflows can be large and drive serious volatility in the markets. For example, in March 2025, global crypto products shed $1.7 billion over the course of a week. This compounded outflow totals $6.4 billion in the trailing five weeks. During this time, 17 consecutive days of outflows were recorded, causing the longest streak since records began in 2015.

As an investor, understanding ETP flow offers insight into institutional investor sentiment. This can often precede the wider market movements in the coming days and weeks. Outflows can signal warning signs of a changing market dynamic. In the case of record-breaking outflows, it could point to a shift in how institutional money is viewing risk within the crypto markets.

Factors driving crypto ETP outflows

ETP outflows are driven by a mix of factors, which include economic conditions, industry concerns, regulation, market cycles and more, that can be used to spot upcoming market moves.

So, if ETP flows can be a useful way to gauge sentiment changes in the market, then it is critical to understand what drives these flows. Crypto markets are fickle and can move quickly on news cycles. Adding to this, there are several other common factors that correlate to driving ETP outflows:

Macroeconomic headwinds: Economic uncertainty and bad news can lead to money flooding out of risky assets. This often includes US Federal Reserve policy concerns, inflation data and interest rate uncertainty. Security concerns: Hiccups within the industry can make investors nervous, especially during news of fraud and hacks such as the $1.5-billion Bybit hack in early 2025.Regulation development: Shifting government positions on crypto can lead to money flows. Particularly, anti-crypto political moves and taxation can spook ETP investors. Market cycles: After significant market gains, pullbacks start to occur as institutions enter a profit-taking phase to book in their profits. This selling action draws money out of the market. Institutional sentiment: Major financial institutions make up a significant chunk of the market. If they decide to reassess their crypto allocation, outflows can begin as strategies move to less risky assets. Technical indicators: Many investors watch technical indicators closely. If key support levels are broken on major cryptocurrencies, selling pressure intensifies quickly.

Often, multiple factors, as explained above, can create a perfect storm for retreating investor sentiment and lead to an unprecedented scale of outflows. Understanding these factors can help you to spot the difference between normal volatility and fundamental market shifts.

Impact of ETP outflows on crypto markets

Crypto ETP outflows are signals of significant sentiment shifts, which in turn continue to put downward pricing pressure on crypto markets.

Prolonged outflow streaks are cause for concern for crypto investors, as they indicate a critical shift in investor sentiment for cryptocurrency. Long streaks suggest that market conditions have become particularly challenging. Generally, outflows start with Bitcoin ETPs, as it is the most well-known and largest cryptocurrency. This can then spread to ETPs for other assets like Ether (ETH) before creating a loss of confidence in the whole crypto market.

During these periods, you’ll quickly see direct price pressure on crypto assets trickle down the markets. During large ETP outflows, cryptocurrency experiences significant price corrections, which can hit 20% or more in a matter of weeks.

Liquidity is also affected, with total assets under management (AUM) dropping by billions of dollars. With more sellers than buyers in the market, the reduced liquidity makes selling harder for many crypto assets, further adding to the downward price pressures.

Market sentiment quickly becomes contagious as negativity spreads from institutions to retail investors. When this happens, even the strongest growth streaks can be terminated as excitable bull runs halt.

ETP outflow indicators

Knowing the key indicators can help provide early warning signals for investors looking to anticipate big market moves.

The concentration of flows in specific products and understanding regional discrepancies can create targeted monitoring to spot investment opportunities. Indicators favored by investors include:

Volume: Unusual spikes in ETP trading volumes usually precede large outflow events. Typically, this spike can signal something important about investor sentiment or market conditions. For instance, a large uptick in volume may indicate that investors are preparing for or responding to news, market movements or shifts in sentiment.Premium/discount shifts: Premiums and discounts refer to the difference between the price at which an ETP is trading in the market and its actual net asset value (NAV), which is the value of the assets held. Shifts in premium/discount can give insight into market sentiment or potential future price movements. For instance, if an ETP that usually trades at a premium suddenly starts trading at a discount, it could signal waning investor confidence in the underlying assets or broader market concerns.Leading product indicators: Leading product indicators are products or assets that tend to signal broader market trends. For example, a movement in the BlackRock iShares Bitcoin Trust (IBIT), a dominant Bitcoin ETF, can indicate growing institutional interest in Bitcoin, which may signal future market growth. These products often lead the way for similar assets or broader market sectors. The performance of industry-leading products is closely monitored by investors, as their price fluctuations can act as a barometer for upcoming trends in both crypto and traditional markets, helping predict broader market shifts.Institutional holdings reports: Institutional holdings refer to the positions held by large investment entities like mutual funds, pension funds and hedge funds. These firms often hold large quantities of assets or securities, and their decisions can have a significant impact on the market. A change in major institutional positions could indicate a shift in how these large players view the market or specific assets. For example, if a large institutional investor starts reducing its position in a particular stock or ETP, it might signal that the investor believes the asset’s price is going to decrease or that they are adjusting their portfolio based on broader economic factors.Flow momentum indicators: Flow momentum indicators track the rate at which capital flows in or out of a market or asset. An acceleration in outflows typically signals panic or growing market uncertainty as investors rush to withdraw funds. Conversely, the deceleration of outflows suggests a stabilization in sentiment, as fears may subside or investors look to reenter the market. Monitoring these indicators helps investors assess the intensity of market sentiment over short (days/weeks) and medium (months) terms, offering insights into whether the market is facing a temporary dip or a more prolonged downturn.Regional flow discrepancies: Regional flow discrepancies refer to the varying capital outflow patterns across different geographic regions. During market sell-offs, US-based investors often lead the way in pulling funds out of the market due to their significant market share and risk appetite. This can result in more substantial outflows in US markets compared to other regions. However, these discrepancies can also present opportunities for international investors, especially when one region shows resilience while others are panicking. Tracking regional trends is crucial for understanding the global dynamics that drive market movements and investor sentiment.Cross-asset correlations: Cross-asset correlations examine how different asset classes, like cryptocurrencies and traditional financial markets, move in relation to one another. Typically, high-risk assets like Bitcoin often show a correlation with tech stocks or other volatile assets. When traditional markets experience turbulence, such as a downturn in equities, crypto markets may also dip as investors seek safety. Conversely, during periods of growth in traditional markets, cryptocurrencies might see inflows as investors look for higher returns. Understanding these correlations enables investors to make more informed decisions by anticipating how crypto markets will react to broader economic conditions.

Crypto ETP inflows and outflows: 2024–Q1 2025 trends and insights

In 2024, crypto ETPs saw record inflows of $44.2 billion, led by Bitcoin and Ether products, despite minor year-end outflows. However, 2025 experienced a sharp reversal, with significant outflows starting in February, resulting in $2.55 billion in net inflows by March 10.

Here are the key highlights of 2024–2025 crypto ETP flows:

2024 net inflows: According to CoinShares, the total net inflows for 2024 reached $44.2 billion, a 320% increase from the previous record of $10.5 billion set in 2021.Bitcoin ETPs inflows: Bitcoin ETPs alone saw $38 billion in inflows, accounting for 29% of Bitcoin’s total AUM of $130 billion.Ether ETPs inflows: Ether-based ETPs also performed well, with late 2024 momentum pushing annual inflows to $4.8 billion, representing 26% of ETH’s $18.6 billion AUM.Minor outflows in 2024: Despite the overall positive net inflows, there were periods of outflows, notably in the last trading week of 2024, which saw $75 million in net outflows, as reported on Jan. 6, 2025.Overall positive net inflows in 2024: These outflows were minor compared to the year’s inflows, and overall, 2024 had no significant net outflows, with the net flow being positive at $44.2 billion.Strong start to 2025: The year 2025 started strongly, with the first three days of January 2025 seeing $585 million in inflows.2025 net inflows by Feb. 10: By Feb. 10, 2025, year-to-date net inflows reached $7.3 billion, with five consecutive weeks of inflows, including a notable week ending Feb. 10 with $1.3 billion in inflows, where Ether ETPs saw $793 million in inflows, outpacing Bitcoin.Reversal of inflows starting Feb. 17, 2025: However, there was a sharp reversal starting from the week ending Feb. 17, 2025, with the first significant weekly net outflows of $415 million, according to CoinShares.End of 19-week inflow streak: This marked the end of a 19-week inflow streak post-US election, amassing $29.4 billion, far surpassing the $16 billion in the first 19 weeks of US spot ETF launches in 2024.Continued outflows in late Feb. 2025: The outflows continued, with the week ending Feb. 24, 2025, seeing $508 million in Bitcoin outflows, and the week ending March 3, 2025, recording the largest weekly outflows on record at $2.9 billion, bringing the three-week total to $3.8 billion.March 2025 outflows: The week ending March 10, 2025, saw another $876 million in outflows, bringing the total outflows over these four weeks to $4.75 billion. Starting the week of March 17, cryptocurrency ETPs saw liquidations accelerate, with $1.7 billion in outflows recorded. This brought the total outflows over the past five weeks to $6.4 billion, according to CoinShares’ report. Crypto ETP inflows surge; AUM declines (as of March 31): Global crypto ETPs saw $226 million in inflows for the week ending March 30, following $644 million the week before. Despite this two-week positive trend after a five-week outflow streak, total AUM dropped below $134 million by March 28. Altcoins recorded $33 million in inflows after four weeks of outflows totaling $1.7 billion.

Future of crypto ETPs

Despite worryingly large outflow events in 2025, the continuing growth in new ETP varieties hitting the market indicates a continued financial interest in the space.

Especially considering the longer-term growth trend of crypto AUM, the future of crypto ETPs as a strong investment vehicle and market driver is strong. Large outflows can be concerning for investors in the short term, but even severe pullbacks of 20%–30% can be recovered during a larger market cycle. In fact, many investors believe these pullbacks are healthy during periods of growth as investors take profits and consolidate market positions.

Regulatory evolution appears positive, particularly in the US, with President Donald Trump being pro-crypto. He’s even signed executive orders to try and improve approaches to crypto regulation and form a Strategic Bitcoin Reserve and digital asset stockpile.

New crypto ETPs are frequently being filed by financial institutions eager to broaden their offerings for investors. In addition to Bitcoin and Ether products, Solana and XRP ETPs have gained significant attention following their approval and launch. These new products have even seen inflows despite downturns in Bitcoin and Ether ETPs.

As the crypto market continues to evolve, the launch of new ETPs is likely to drive further innovation and attract a broader range of investors. With increasing regulatory clarity and growing institutional interest, future offerings may expand to include other promising cryptocurrencies.

As a result, you can expect continued diversification in the crypto ETP space, with potential for increased inflows and new market opportunities, even amid fluctuations in established assets like BTC and ETH.

Coin Market

Ethereum Foundation shifts focus to user experience, layer-1 scaling

Published

54 minutes ago

April 21, 2025

The Ethereum Foundation, the nonprofit organization developing the Ethereum ecosystem, is shifting its focus to user experience and layer-1 scaling challenges following its March leadership reshuffle.

On April 21, the Ethereum Foundation co-executive director Tomasz Stańczak shared an X post detailing how the organization has changed since its change in leadership structure.

Stańczak said the change aims to give Ethereum co-founder Vitalik Buterin more time for research and exploration rather than dealing with day-to-day tasks and crisis management.

“Each time Vitalik shares insights or communicates a direction, he accelerates major long‑term breakthroughs,” he wrote.

Stańczak added that Buterin’s recent posts had advanced promising avenues and helped realign the community around the organization’s core values.

Vitalik Buterin tackles Ethereum privacy and speed

On March 1, the Ethereum Foundation announced that its core researcher Hsiao-Wei Wang and Stańczak, the CEO of Nethermind, would become the co-directors of the organization from March 17.

Since the changes in the organization’s leadership structure, Buterin has stepped back from daily operations. He has since published proposals addressing the Ethereum network’s privacy and performance limitations.

On April 11, the Ethereum co-founder unveiled a privacy roadmap for the network. In the post, Buterin proposed having features that anonymize user transactions. Buterin said the features should be “ideally turned on by default.”

Besides the privacy of transactions, Buterin also shared a post addressing Ethereum’s speed and efficiency. On April 20, Buterin proposed a change in the Ethereum Virtual Machine’s (EVM) contract language to improve the efficiency and speed of the blockchain’s execution layer.

Stańczak said that while Buterin’s proposals will “always carry weight,” they are supposed to start conversations and encourage progress in different research areas. The executive said the community can either refine or reject the ideas.

Foundation targets near-term protocol upgrades

The Ethereum Foundation will shift much of its research to “near-term” goals, including addressing user experience and scaling challenges in upcoming protocol upgrades, Stańczak said.

Stańczak added that the foundation will concentrate on layer-1 scaling, support for layer-2 scaling, and user experience improvements such as interoperability in the Pectra, Fusaka and Glamsterdam upgrades.

While the focus shifted to near-term results, the executive said the team is also looking into ways to bring in more long-term projects.

“Posts from our top researchers help some of them to ship within one or two years through initiatives such as next‑generation execution and consensus layers,” Stańczak said.

Cointelegraph contacted the Ethereum Foundation for comment but did not receive a response by publication.

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Coin Market

Crypto adoption will be driven by high-growth markets, with or without the US

Published

2 hours ago

April 21, 2025

Opinion by: Dominic Schwenter, chief operating officer of Lisk

The US is in the middle of a crypto boom. Exchange-traded fund approvals have opened the door to institutional adoption, liquidity is increasing, and regulatory clarity is beginning to take shape under a more crypto-aligned administration. Filings from the Securities and Exchange Commission referencing blockchain hit an all-time high in February 2025, signaling a broader shift in how seriously the technology is being taken at the highest levels.

This momentum is good for the industry. US-based crypto companies have spent nearly a decade building through regulatory uncertainty, and they deserve the attention and rewards that are finally arriving. Is institutional support finally showing up? It’s overdue — and well-earned.

Zooming in on the US too much, however, puts the industry at risk of missing what’s happening elsewhere. Some of the most important crypto adoption today takes root in places far outside the spotlight.

The most exciting crypto adoption isn’t happening on Wall Street. It is unfolding in high-growth markets where people use crypto not to speculate but out of necessity. These communities didn’t wait for headlines. They built through every cycle and are now setting the pace for where Web3 is going next.

High-growth markets are leading in adoption

Fifteen of the top 20 countries on Chainalysis’s 2024 Global Crypto Adoption Index are in high-growth regions such as Indonesia, Vietnam, the Philippines and Nigeria. These aren’t just speculative hotspots. In many of these countries, crypto is part of daily life. Unlike boom-and-bust markets, adoption here hasn’t wavered. It is grounded in utility.

In many of these economies, crypto helps families facilitate remittance, offers a safer way to store value when local currencies aren’t stable, and lets small businesses move money without friction. In the West, crypto still carries the sheen of a high-risk investment. In high-growth markets, it’s already embedded into daily life. That’s what real adoption looks like.

Builders are shifting to high-growth markets

As steady, practical usage rises, builder activity follows. Currently, the global developer map is changing fast.

According to the 2024 Electric Capital Developer Report, Asia now accounts for 32% of active crypto developers — a massive jump from just 12% in 2015. Over the same period, the US share dropped sharply, from 38% to 19%. The blockchain talent pool isn’t shrinking. It’s moving to where the momentum is.

Additionally, 41% of all new crypto developers now come from Asia, illustrating a growing pipeline of builders emerging outside of traditional tech hubs. These aren’t just hobbyists but the next wave of founders, architects and engineers choosing to build closer to the problems crypto can solve.

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This shift isn’t limited to Central Asia. Africa, South America and Southeast Asia are all seeing steady increases in developer activity, while North America and Europe continue to decline in relative share. The message is clear: Web3 innovation is no longer anchored to a single geography. It’s being driven by builders who are closer to real-world needs — and who are designing for them.

Blockchain solves real problems

The surge in developer activity and adoption across high-growth markets isn’t happening in a vacuum. Instead, it’s tied to real-world effects.

A clear example is PepsiCo South Africa’s use of blockchain for supply chain tracking in the informal trade sector. In a region where traditional infrastructure is often fragmented or absent, this implementation does what blockchain was meant to do: solve problems.

Using a blockchain-powered end-to-end digital payments solution like Lov.cash, PepsiCo enables cashless payments between small, often unbanked retailers and wholesalers. The system also gave wholesalers a clear view into what was selling and where — helping them plan smarter and cut down on waste. There’s no token speculation here, no shiny non-fungible tokens — just a real solution to a real supply chain problem.

Stories like this rarely get top billing, but they’re where the technology actually delivers. In places where basic infrastructure is lacking, blockchain isn’t an experiment. It’s a workaround. If the industry keeps chasing hype while ignoring this influence, it’ll miss the most significant chance to make a difference.

A call to action for Web3 builders

What’s happening in the US is worthy of celebration — but it’s not the whole story. Real-world adoption, momentum from builders, and real use cases are accelerating in high-growth markets, where crypto is already making a difference.

This is where Web3’s long-term effect will be shaped. Builders and investors should stop waiting for validation from Washington or Wall Street and start paying attention to the places where the tech is solving real problems right now.

Crypto didn’t wait for the US to matter. If the goal is to build something truly global, it’s time to follow the people already using it to make things work.

Opinion by: Dominic Schwenter, chief operating officer of Lisk.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Coin Market

Metaplanet tops $400M Bitcoin holdings with new $28M purchase

Published

2 hours ago

April 21, 2025

Japanese investment firm Metaplanet increased its Bitcoin holdings to more than $400 million after its latest purchase.

Metaplanet acquired 330 Bitcoin (BTC) for $28.2 million at an average price of $85,605 per BTC, bringing its total holdings to 4,855 Bitcoin worth $414 million, according to an April 21 post from Simon Gerovich, the CEO of Metaplanet.

The firm’s Bitcoin yield surpassed 119% year-to-date after its latest investment.

Source: Simon Gerovich

Metaplanet issued 2 billion Japanese yen ($13.3 million) of bonds to buy more Bitcoin on March 31, Cointelegraph reported.

The $414 million in Bitcoin holdings make Metaplanet Asia’s largest and the world’s 10th-largest corporate Bitcoin holder, Bitbo data shows.

Source: Bitbo

According to Enmanuel Cardozo, a market analyst at the asset tokenization platform Brickken, the growing institutional presence of firms, such as Strategy and Tether, is accelerating the four-year Bitcoin cycle.

“That puts the bottom around Q3 this year and a peak mid-2026, but I think we might see things move it a bit sooner because the market’s more mature now with more liquidity,” the analyst told Cointelegraph.

Metaplanet plans to reach 21,000 BTC

The latest acquisitions are part of Metaplanet’s plans to accumulate 21,000 BTC by 2026, aligning with its mission to drive Bitcoin adoption across Japan.

Often dubbed “Asia’s MicroStrategy,” Metaplanet has drawn comparisons to Michael Saylor’s company Strategy, which continues to top the list of public Bitcoin holders.

Metaplanet’s investment was announced a week after the latest purchase by Strategy, the world’s largest corporate Bitcoin holder.

Source: Michael Saylor

Strategy bought 3,459 BTC for $285.5 million at an average price of $82,618 per BTC, bringing its total holding to 531,644 BTC acquired for a cumulative $35.92 billion, Cointelegraph reported on April 14.

Despite tariff uncertainty limiting risk appetite among traditional and crypto investors in the short term, analysts are optimistic about Bitcoin’s price trajectory for the next decade.

Bitcoin may surpass $1.8 million by 2035, driven by its growing recognition as a superior savings technology, set to rival or surpass gold’s $21 trillion market capitalization, Joe Burnett, director of market research at Unchained, told Cointelegraph during the Chainreaction live show on X.

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