Crypto ETPs Record $876 Million in Outflows for Fourth Straight Week

The cryptocurrency market faced continued pressure last week as exchange-traded products (ETPs) experienced their fourth consecutive week of outflows. Meanwhile, Utah moved forward with modified Bitcoin legislation, and Binance’s founder advocated for stricter bot controls on social media platform X.

Cryptocurrency ETPs bled $876 million in capital during the past trading week, according to data from CoinShares, extending the downward trend that has now lasted a full month. While this represents a significant improvement from the previous week’s record $2.9 billion outflow, it pushed the four-week exit total to a substantial $4.75 billion, as reported by CoinShares on March 10.

James Butterfill, head of research at CoinShares, characterized investor sentiment as bearish and indicated that the market showed signs of capitulation. Bitcoin-focused ETPs bore the brunt of the exodus, accounting for $756 million—approximately 85% of last week’s outflows. Notably, even short-Bitcoin products experienced $19.8 million in outflows, the largest such movement since December 2024.

The prolonged departure of capital has dramatically reduced year-to-date inflows to $2.6 billion, down from record levels seen after the January launch of spot Bitcoin ETFs in the United States. Total assets under management (AUM) declined by $39 billion to $142 billion—the lowest level since mid-November 2024—due to a combination of negative price action and continued investor withdrawals.

The bearish sentiment wasn’t limited to Bitcoin. Ethereum ETPs lost $89 million, while Tron (TRX) and Aave (AAVE) products saw outflows of $32 million and $2.4 million respectively.

In regulatory developments, Utah’s Senate passed the HB230 “Blockchain and Digital Innovation Amendments” bill, but only after removing a key provision that would have established a state Bitcoin reserve. The legislation, now awaiting Governor Spencer Cox’s signature, still provides Utah residents with important protections including the right to mine Bitcoin, run nodes, and participate in staking activities.

The stripped provision would have authorized Utah’s treasurer to invest up to 5% in digital assets with market capitalizations exceeding $500 billion over the previous calendar year across five state accounts.

“There was a lot of concern with those provisions and the early adoption of these types of policies,” explained bill sponsor Senator Kirk A. Cullimore during Utah’s March 7 floor session. “All of that has been stripped out of the bill.”

On the social media front, Binance co-founder Changpeng “CZ” Zhao called on Elon Musk to eliminate automated bots from X (formerly Twitter), highlighting a persistent problem plaguing the cryptocurrency community.

“I think X should ban all bots. I only want to interact with humans here — not ‘automated,'” CZ wrote in a March 9 post.

Automated bots have long been used to amplify messages through coordinated likes and retweets, often impersonating cryptocurrency executives to promote scams, fake tokens, and phishing links targeting unsuspecting users. A 2023 study from the Network Contagion Research Institute found that these coordinated bot attacks were also deployed to manipulate cryptocurrency prices, representing an ongoing challenge for the digital asset ecosystem.

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