Cryptocurrency ETPs Experience Significant Outflows Amid Regulatory Progress

Cryptocurrency-based exchange-traded products (ETPs) have been experiencing a significant decline in investor confidence, with a substantial $1.47 billion withdrawn between May 16 and May 22. This is the second consecutive week of negative results and marks the third-largest outflow since the start of 2026.

The largest outflows were seen from bitcoin-based funds, which totaled $1.32 billion, an increase from the previous period's $981.5 million. In contrast, short products attracted $10.2 million in investments.

Ethereum-based instruments also saw a decline of $222.8 million, while XRP ETPs and SOL ETPs maintained inflows at $31.8 million and $7.7 million, respectively. Additionally, funds flowed into products on Sui ($2.9 million), Chainlink ($0.6 million), and Litecoin ($0.4 million).

Total assets under management fell from $156.9 billion to $148.7 billion, marking a second consecutive week of decline despite Senate Banking Committee approval of the CLARITY Act.