Crypto ETPs Record $1.17 Billion Outflows Last Week

Cryptocurrency exchange-traded products recorded $1.17 billion in outflows last week, marking the second consecutive week of significant withdrawals amid persistent market uncertainty. The figure represented a roughly 225 percent increase from the $360 million in outflows the prior week, according to data from CoinShares released on Monday.

The selloff followed a liquidity shock on October 10 that eroded investor confidence, compounded by macroeconomic concerns surrounding the Federal Reserve's potential interest rate decision in December. James Butterfill, head of research at CoinShares, pointed to these factors as key drivers of the negative sentiment. Trading volumes for the products remained robust at approximately $43 billion, indicating sustained interest despite the capital flight.

A temporary lift in sentiment occurred on Thursday, when progress in U.S. Senate negotiations toward averting a government shutdown spurred brief inflows. Bitcoin prices climbed back above $106,000 after repeated attempts to break below $100,000. However, optimism faded quickly, with outflows resuming by Friday as fiscal and policy uncertainties resurfaced.

Bitcoin-linked products bore the brunt...