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Global cryptocurrency exchange-traded products (ETPs) saw $2.9 billion in outflows last week led by Bitcoin, totaling over $3.8 billion across three weeks. Bitcoin ETPs Exchange-traded products (ETPs) in crypto recorded their first net outflows of capital in 2025, ending a streak of 19 consecutive weeks of inflows. According to a recent Recent data from Coinglass shows that 320,374 traders have faced liquidations in the past 24 hours, leading to total losses of $907.7 million. The cryptocurrency Digital asset investment product inflows broke over $1 billion for the year, adding a further $293 million last week. Bitcoin and ether-based products led the surge, with Cryptocurrency exchange-traded products (ETPs) experienced the biggest weekly sell-off ever, with outflows reaching a record $2.9 billion last week. Amid three In a rapid move that underscores the inherent volatility of digital assets, approximately $172 million worth of leveraged positions were closed out on major exchanges Cryptocurrency exchange-traded products (ETPs) have faced significant outflows in recent weeks, with the latest report showing a fifth consecutive week of sell-offs. Crypto ETPs face record outflows amid bearish market sentiment. Explore factors driving these trends and opportunities for fintech startups in crypto funding.

Crypto ETPs See $172 Million Wiped Out in 2023: Understanding the Outflows

The cryptocurrency market experienced significant turbulence in 2023, with approximately $172 million worth of leveraged positions closed out on major exchanges. This dramatic event highlights the inherent volatility of digital assets and its impact on crypto exchange-traded products (ETPs).

Record Outflows in Crypto ETPs

Cryptocurrency exchange-traded products (ETPs) have faced significant outflows in recent weeks, with the latest report showing a fifth consecutive week of sell-offs. The market saw record outflows, reaching a staggering $2.9 billion last week, marking the biggest weekly sell-off ever. Global cryptocurrency exchange-traded products (ETPs) saw $2.9 billion in outflows last week led by Bitcoin, totaling over $3.8 billion across three weeks. Crypto ETPs face record outflows amid bearish market sentiment.

Factors Driving the ETP Sell-Off

Several factors contributed to this wave of sell-offs, including:

  • Bearish Market Sentiment: Negative market trends and investor concerns about regulatory uncertainty fueled a risk-off approach.
  • Bitcoin's Influence: Bitcoin ETPs led the outflows, impacting the broader crypto ETP market.
  • Liquidations: Recent data from Coinglass shows that 320,374 traders have faced liquidations in the past 24 hours, leading to total losses of $907.7 million.

Contrasting Trends and Opportunities

Despite the significant outflows, it's important to note some contrasting trends. Digital asset investment product inflows broke over $1 billion for the year, adding a further $293 million last week. Bitcoin and ether-based products led the surge, with some periods experiencing substantial inflows. However, these gains were overshadowed by the recent sell-offs.

Interestingly, Bitcoin ETPs Exchange-traded products (ETPs) in crypto recorded their first net outflows of capital in 2025, ending a streak of 19 consecutive weeks of inflows. This shows that even periods of strong inflows can be followed by sharp reversals.

Implications for Fintech Startups and the Future of Crypto ETPs

The current market conditions present both challenges and opportunities for fintech startups. Explore factors driving these trends and opportunities for fintech startups in crypto funding. Startups that can develop innovative strategies for managing risk, improving investor education, and building robust trading platforms stand to benefit in the long run. The future of crypto ETPs depends on rebuilding investor confidence and adapting to the ever-evolving regulatory landscape.

While the $172 million wipeout and record outflows are concerning, they also serve as a reminder of the importance of due diligence, risk management, and diversification within the cryptocurrency market.

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