Crypto ETP outflows are often an indication of shifting market sentiment or investor concerns, such as regulatory changes or market downturns.
Crypto ETPs give exposure to digital assets via traditional financial instruments. When more money exits these products rather than entering them, it is known as an “outflow” rather than an “inflow” — i.e., more people are selling than buying.
Crypto exchange-traded products (ETPs) hold crypto assets as their underlying commodity. The goal is for them to provide an exchange-traded investment for investors who want exposure to crypto without directly buying the digital assets.