Cryptocurrency ETPs Face 'Emergency' with $1.67 Billion Net Outflow...Even Retail Buying Interest Disappears

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With $4.21 billion flowing out of cryptocurrency investment products in just three weeks, Bitcoin (Bitcoin, BTC) ETPs recorded their largest weekly outflow this year, and the inflow into altcoins also narrowed sharply.

According to CoinTelegraph, a cryptocurrency specialized media outlet, on June 1 (local time), CoinShares announced that $1.67 billion in net outflows occurred from cryptocurrency Exchange Traded Products (ETPs) last week. This marks the second-largest weekly outflow since 2026. The cumulative outflow over the past three weeks increased to $4.21 billion, and total assets under management decreased to $141 billion, reaching its lowest level since early April.

James Butterfill, Head of Research at CoinShares, analyzed that risk-off movements related to Iran overshadowed the positive impact of progress on the US cryptocurrency market structure bill (CLARITY Act). He stated, “This trend is reminiscent of the January-February phase, which saw five consecutive weeks of net outflows.”

The outflow of funds was concentrated in Bitcoin ETPs. Bitcoin ETPs saw $1.44 billion exit last week, marking the largest weekly outflow this year. While the monthly outflow reached $2.4 billion, it still maintained a net inflow of approximately $1.2 billion year-to-date. Assets under management for Bitcoin ETPs decreased to $114.6 billion.

Ethereum (Ethereum, ETH) funds also could not escape selling pressure. Ethereum funds experienced a net outflow of $257.3 million, and year-to-date losses expanded to $346 million. Altcoin participation also significantly decreased. Butterfill explained that the number of assets recording significant inflows of over $1 million dropped from 9 last week to 5.

Among the assets that did see inflows, XRP once again led the positive trend with $20.3 million. Hyperliquid (Hyperliquid, HYPE) recorded an inflow of $10.8 million, and Near (Near, NEAR) saw $7.6 million. This indicates that limited buying interest was concentrated in only a few altcoins while funds were exiting the overall market.

Regionally, the United States virtually led the outflow trend. $1.63 billion exited the US, and US-listed spot Bitcoin ETFs also saw a net outflow of $1.42 billion. Germany recorded an outflow of $25.7 million, Sweden $6.6 million, and Hong Kong $4.5 million. The Netherlands was the only country to record a net inflow of over $1 million, with $1.3 million in inflows, but this was a decrease from $6.6 million the previous week.

Laser Digital's derivatives trading desk diagnosed that last week's cryptocurrency sell-off occurred without a clear single catalyst, and sluggish stock market trends also played a role. The desk cited the fact that Strategy did not make additional Bitcoin purchases from May 18 to May 24 and the lack of retail buying interest as examples of demand gaps. Laser Digital stated, “As STRC continues to trade below par and retail buyer interest is lacking, Bitcoin is expected to remain weak for the time being.”

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*