- Crypto ETPs saw $1.7 billion in outflows last week, extending a five-week losing streak.
- Bitcoin products accounted for $978 million in withdrawals, dragging YTD inflows down to $612 million.
- Despite outflows, technical indicators suggest a possible market rebound in the coming months.
Institutional investors continue to exit crypto ETPs, with Bitcoin products bearing the brunt of withdrawals. Over the past five weeks, $5.4 billion has left Bitcoin investment products, impacting market sentiment and reducing year-to-date inflows.
Despite this downturn, some technical signals indicate a potential turnaround. Bitcoin’s stochastic RSI has formed a bullish crossover, historically a sign of an upcoming price recovery.
Institutional Outflows Hit Crypto ETPs, but Signs of Recovery Emerge
The crypto market is experiencing its longest streak of outflows in nearly a decade, with $6.4 billion withdrawn from exchange-traded products over five weeks. Bitcoin ETPs have been hit hardest, seeing nearly $1 billion in outflows last week alone. Major players like BlackRock and 21Shares have also suffered, further amplifying market uncertainty.
Ethereum and Solana have not been spared from this trend, recording outflows of $176 million and $2.2 million, respectively. However, XRP has defied the broader market sentiment, attracting $1.8 million in inflows, hinting at selective investor confidence. The divergence in asset performance suggests that investors are becoming more strategic in their allocations.
Amid the downturn, some institutional investors are positioning themselves for a potential recovery. Crypto hedge funds have increased their Bitcoin exposure, reaching their highest accumulation level in four months. This shift indicates that while the market remains under pressure, some investors see long-term value in digital assets.
Additionally, technical indicators such as Bitcoin’s stochastic RSI bullish crossover provide optimism for a price rebound. If history repeats itself, Bitcoin could see a reversal in its current downtrend, potentially stabilizing the broader crypto market.
While institutional outflows continue to weigh on the market, the growing accumulation by hedge funds and positive technical signals suggest that a turnaround could be on the horizon.
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher.
