Cryptocurrency investment products faced heightened selling pressure last week as crypto funds recorded a second consecutive week of outflows amid ongoing negative sentiment in the markets. Crypto exchange-traded products (ETPs) saw $1.17 billion in outflows last week, up approximately 70% from the $360 million recorded the previous week, CoinShares reported on Monday. This suggests a significant increase in bearish sentiment compared to the previous week. CoinShares’ head of research, James Butterfill, attributed the sell-off to the prevailing negative crypto market trend following the October 10th flash crash, coupled with uncertainty surrounding a potential US interest rate cut in December. The market remains sensitive to macroeconomic factors. ETP trading volumes remained elevated at $43 billion for the week, according to Butterfill, who highlighted a brief recovery on Thursday fueled by optimism regarding a potential resolution to the US government shutdown. However, renewed outflows surfaced on Friday as those hopes diminished. The market continues to react sharply to news events. ### Bitcoin Outflows Persist, Ethereum Fails to Gain Traction Mirroring the prior week's trend, Bitcoin (BTC) ETPs spearheaded the outflows last week, registering $932 million, a slight decrease from the $946 million the week before. This indicates continued investor hesitancy towards Bitcoin. Ether (ETH) funds were unable to withstand the negative momentum, reporting $438 million in outflows after experiencing $57 million in inflows the previous week. This highlights the broad-based nature of the negative sentiment. ### Solana and XRP Show Relative Strength Several altcoins demonstrated resilience to the crypto ETP sell-off, with Solana (SOL) leading the way, posting $118 million in inflows last week. Over the past nine weeks, inflows into SOL ETPs have totaled $2.1 billion, noted Butterfill. Solana's recent performance contrasts sharply with the broader market. Other altcoins, including XRP (XRP), Hedera (HBAR), and Hyperliquid (HYPE), also recorded inflows, garnering $28 million, $27 million, and $4.2 million, respectively. This suggests selective investor interest in specific altcoins. After two consecutive weeks of outflows totaling $1.5 billion, assets under management (AUM) in crypto ETPs declined to $207.5 billion, marking the lowest level since mid-July. AUM had peaked in early October at over $254 billion, demonstrating the significant impact of the recent market downturn. Investors are clearly reducing their exposure to crypto ETPs.


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