Crypto investment products have seen over $450 million in cumulative outflows over the past nine weeks.
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Outflows from crypto exchange-traded products (ETPs) reached $455 million over the previous nine weeks, according to a report from asset manager CoinShares. Outflows from ETPs generally indicate negative sentiment toward cryptocurrencies.
Crypto exchange-traded products are designed to track crypto prices. When shares of these funds fall below their target prices, they sell off cryptocurrencies, causing outflows.
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The week leading up to Sept. 18 saw outflows of $54 million — capping off nine weeks in which only a single week saw inflows. Bitcoin
$26,216 saw the biggest drawdown from all exchange-traded products and was responsible for 85% of all outflows from these funds. Last week, over $45 million worth of Bitcoin was sold into the market by ETPs.
$1,588 funds were also not spared in the deluge of selling. They saw outflows of approximately $5 million last week.
Despite these outflows, a few ETPs representing altcoins did well last week. Solana
$19 ETPs saw net inflows of $700,000, Cardano
ADA 
$0.246 gained $430,000 and XRP
XRP
$0.50 added $130,000.
CoinShares also provided data about the regional origin of crypto ETP outflows. The United States was responsible for 77% of the outflows, with Germany, Canada and Sweden also having caused a sizable percentage of the outflows.
Crypto ETPs offer an easier way for investors with traditional financial accounts to invest in digital assets. However, the issuance of a spot Bitcoin exchange-traded fund has faced numerous regulatory and legal barriers in the United States. In March, the Securities and Exchange Commission (SEC) denied VanEck’s proposal for a Bitcoin Trust. On Aug. 11, a U.S. federal appeals court ruled that the SEC had been “arbitrary and capricious” in denying a Bitcoin ETP proposal from Grayscale