In a notable trend, crypto exchange-traded products (ETPs) experienced net outflows amounting to $446 million last week, as investor sentiment continues to reflect caution. This decline adds to a total of $3.2 billion in withdrawals since October 10, according to asset manager CoinShares, indicating a lack of recovery in investor confidence as the year comes to a close.
Despite these outflows, year-to-date inflows remain strong at $463 billion, aligning with 2024 expectations. CoinShares' head of research, James Butterfill, noted a modest increase of only 10% in total assets under management this year, revealing that many investors have not experienced positive returns when accounting for flows.
Investor preferences have shifted, with newer products like XRP and Solana ETPs gaining traction. XRP ETPs attracted $70.2 million and Solana ETPs drew in $7.5 million, marking a stark contrast to the outflows from Bitcoin and Ether products, which lost $443 million and $59.5 million respectively. The data suggests a selective engagement with crypto capital, favoring newer offerings over traditional assets.