The outflows from crypto exchange-traded funds (ETPs) continued into the fourth consecutive week, with total outflows reaching nearly $5 billion. Market sentiment remained gloomy as Bitcoin was the biggest sell-off, while many altcoins were also unable to avoid the decline.

Strong Outflows in the Past Month
According to a March 10 report by CoinShares, crypto ETP funds continued to record outflows, with $876 million in the past week. Previously, the first week of March saw a record net outflow of $2.9 billion. In total, these funds have seen nearly $5 billion in outflows over the past month, reflecting investors' concerns about market volatility.

Although the pace of capital withdrawals has slowed somewhat, according to James Butterfill, Director of Research at CoinShares, the market is showing signs of psychological bottoming (capitulation) as investors exit Crypto ETP funds en masse.

Bitcoin Leads the Sell-Off
Data shows that Bitcoin is the most withdrawn asset, with $756 million withdrawn over the past week, accounting for 86% of total outflows. Short-Bitcoin hedge funds also recorded a net withdrawal of $19.8 million, the highest level since December 2024.

Altcoin market capitalization (excluding BTC) has dropped sharply recently – TradingView

Crypto ETP funds have recorded significant inflows since the beginning of the year. However, after a strong withdrawal in the past 4 weeks, the total net inflow into this market since the beginning of the year has dropped to $2.6 billion.

Crypto ETPs also saw a sharp decline in total assets under management (AUM), down $39 billion to $142 billion, the lowest since November 2024.

Altcoins Are No Exception
Not only Bitcoin, Ethereum ETPs also suffered $89 million in withdrawals over the past week. Other altcoins such as Tron and Aave were also under selling pressure, with $32 million and $2.4 million withdrawn, respectively.

However, there were still bright spots as some altcoin ETPs recorded inflows. Solana attracted $16.4 million, XRP added $5.6 million, while Sui recorded inflows of $2.7 million.

Selling Pressure Remains High
The continued withdrawal of Crypto ETPs reflects the fear that is still dominating the market. Although the rate of capital withdrawal has decreased compared to last week, with a total bleeding of nearly 5 billion USD in a month, the selling pressure is still very large.

In the context of the Crypto market still having many fluctuations, investors are waiting for clearer signals before returning to Crypto investment funds.