Bitcoin Leads First Major Weekly Crypto ETP Outflows of 2025 at $430M

February 17, 2025

Bitcoin Leads First Major Weekly Crypto ETP Outflows of 2025 at $430M

Crypto ETPs Experience Significant Sell-Off Amid Economic Concerns

Cryptocurrency exchange-traded products (ETPs) recorded significant outflows last week, marking the first major sell-off of 2025.

According to a report from CoinShares on 17 January, crypto ETPs saw total outflows of $415 million, with Bitcoin (BTC) leading the decline with $430 million in withdrawals. However, losses were partially offset by inflows into altcoin-based ETPs, including Solana (SOL), XRP, and Sui (SUI).

Bitcoin ETPs Face the Brunt of Outflows

CoinShares’ head of research, James Butterfill, attributed the sell-off to macroeconomic factors, particularly US Federal Reserve Chair Jerome Powell’s call for patience regarding interest rate cuts and higher-than-expected US inflation data.

*Weekly crypto asset inflows by the number of the week in late 2024 and early 2025 (in millions of US dollars). Source: CoinShares*

Bitcoin, being highly sensitive to interest rate expectations, bore the brunt of investor outflows. However, there were no corresponding inflows into short-Bitcoin products, which instead saw outflows of $9.6 million, indicating that investors were not betting against BTC but rather pulling funds due to economic uncertainty.

End of a 19-Week Inflow Streak

The recent outflows marked the end of a 19-week streak of net inflows, which had begun amid optimism surrounding the US presidential election.

During this period, crypto investment products accumulated $29.4 billion, far exceeding the $16 billion amassed in the first 19 weeks following the launch of US spot Bitcoin ETFs in January 2024, Butterfill noted.

Solana and XRP Lead Altcoin Inflows

While Ether (ETH) ETPs experienced minor outflows of $7.2 billion last week, altcoins such as Solana and XRP were the biggest gainers.

*Flows by assets (in millions of US dollars). Source: CoinShares*

Solana ETPs saw the highest inflows, totalling $8.9 million, followed closely by XRP and Sui, which attracted $8.5 million and $6 million, respectively.

Investor interest in Solana and XRP ETPs has surged amid growing optimism over the potential approval of Solana and XRP exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).

According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, a Solana ETF has a 75% chance of SEC approval in 2025, while an XRP ETF has a 65% probability of gaining approval.