It has been a rough few weeks for crypto-oriented investment products. Outflows have been happening for three weeks in a row now. And not just small numbers. Last week alone, $2.9 billion walked out the door, making it the largest weekly outflow on record, according to CoinShares.
Add that to the previous two weeks, and you are looking at a total of $3.8 billion leaving the space. Not exactly the kind of streak anyone was hoping for.
Godfrey BenjaminBitcoin (BTC), as expected, took the hardest hit. Last week, $2.59 billion flowed out of exchange-traded products focused on the leading cryptocurrency. Ethereum (ETH) did not escape either, seeing a record $300 million in outflows. Solana (SOL) also felt the pressure, with $7.4 million leaving.
What's the driver?
A few things. The recent Bybit hack shook confidence. The Federal Reserve’s hawkish stance did not help. And let’s not forget the 19-week inflow streak that brought in $29 billion before this downturn. Profit-taking was bound to happen, and here we are.
Here’s the twist. While most of the market was struggling, two assets stood out: Sui and XRP. Sui led the pack with $15.5 million in inflows, making it the week's best performer. XRP followed with 5 million in inflows. Not huge numbers compared to the outflows, but in a week like this, any inflow is noteworthy.
Gamza KhanzadaevThe big players are under pressure, but smaller, niche assets are finding themself in the spotlight. Sui and XRP’s ability to attract capital while the rest of the market stumbles says something. Maybe it is shifting investor confidence. Maybe it is timing. Either way, it is worth watching.
Dan Burgin
Vladislav Sopov