$2 billion in outflows from encryption asset ETPs last week, with total AUM down 27% from its peak.

Last week, the digital asset ETP experienced an outflow of $2 billion, primarily driven by uncertainty in monetary policy and the selling of crypto assets by native whales.

The United States accounted for 97% of the total outflows ($1.97 billion), while Germany recorded inflows of $13.2 million against the backdrop of widespread global negative sentiment. Bitcoin and Ethereum led the decline, with outflows of $1.38 billion and $689 million, respectively, as investors shifted to multi-asset ETPs (+$69 million) and increased their short positions in Bitcoin.

Last week, the total outflow of digital asset investment products (ETPs) reached $2 billion, marking the largest single-week outflow since February this year. This marks the third consecutive week of outflows, with the cumulative total outflow in this round reaching $3.2 billion. We believe that the combination of monetary policy uncertainty and the selling by native Crypto Assets whales is the main reason for the recent negative market sentiment. The recent price decline has caused the total assets under management (AuM) of digital asset ETPs to fall from a peak of $264 billion in early October to $191 billion, a decline of 27%.

Although negative sentiment is widespread across various regions, the U.S. market accounted for 97% of the outflow, totaling $1.97 billion; Switzerland and Hong Kong followed closely, with outflows of $39.9 million and $12.3 million, respectively. German investors, on the other hand, hold the opposite view, seeing the recent price weakness as an opportunity, recording a total inflow of $13.2 million.

Bitcoin has been the first to bear the brunt of negative sentiment, with a total outflow of 1.38 billion dollars last week. The consecutive outflows over the past three weeks now account for 2% of the total managed assets of Bitcoin ETP. Proportionally, the situation for Ethereum is even worse, with an outflow of 689 million dollars last week, accounting for 4% of its total managed assets. Solana and Ripple also experienced slight outflows of 8.3 million dollars and 15.5 million dollars, respectively.

Investors seeking safe havens have injected $69 million into multi-asset ETPs over the past three weeks, while ETPs that shorted Bitcoin saw an inflow of 9.1% of funds during the same period.