Cryptocurrency exchange-traded products (ETPs) outflows arrive According to a report by asset management firm CoinShares, it was worth $455 million in the past nine weeks. Outflows from ETPs often indicate negative sentiment towards cryptocurrencies.

Cryptocurrency exchange-traded products are designed to track cryptocurrency prices. When the funds’ share prices fall below their target prices, they sell cryptocurrencies, leading to outflows.

Outflows amounted to $54 million in the week ended September 18, with inflows occurring in only one of the nine weeks. Bitcoin (BTC) had the largest decline of all exchange-traded products, accounting for 85% of all outflows from these funds. Last week, the ETP sold more than $45 million worth of Bitcoin to the market.

Ethereum (ETH) funds have not been immune to the sell-off. There were about $5 million in outflows last week.

Despite these outflows, some ETPs representing altcoins performed well last week. Solana (SOL) ETP saw net inflows of $700,000, Cardano (ADA) rose by $430,000, and XRP (XRP) rose by $130,000.

CoinShares also provides data on the regional sources of cryptocurrency ETP outflows. The United States is responsible for 77% of outflows, with Germany, Canada and Sweden also responsible for a significant share.

Cryptocurrency ETPs provide investors with traditional financial accounts an easier way to invest in digital assets. However, the issuance of spot Bitcoin exchange-traded funds faces numerous regulatory and legal obstacles in the United States. In March, the U.S. Securities and Exchange Commission (SEC) rejected VanEck’s Bitcoin trust proposal. On August 11, the U.S. Federal Court of Appeal ruled that the SEC’s rejection of Grayscale’s Bitcoin ETP proposal was “arbitrary and capricious.”