Bitcoin ETP outflows push rolling one-year flows negative for first time since 2023: K33
Bitcoin ETP holdings are down 8% from their peak, the largest drawdown on record, according to Head of Research Vetle Lunde.
Bitcoin exchange-traded product (ETP) outflows have pushed rolling one-year flows into negative territory for the first time since 2023, according to research from K33. Vetle Lunde, Head of Research at K33, reported that Bitcoin ETP holdings have fallen 8% from their peak — the largest drawdown on record for the asset class.
The decline reflects a sustained period of investor redemptions across Bitcoin ETP products globally. Bitcoin ETPs, which provide regulated exposure to the cryptocurrency without requiring direct ownership, have grown significantly in prominence since the launch of U.S. spot Bitcoin ETFs in January 2024. That period saw record inflows, making the current reversal particularly notable in scale and timing.
The shift to negative one-year rolling flows signals a meaningful change in institutional and retail sentiment toward Bitcoin through regulated investment vehicles. Analysts have pointed to broader macroeconomic uncertainty, risk-off behavior in financial markets, and profit-taking following Bitcoin's late 2024 rally as contributing factors to the outflow trend. The record drawdown in holdings underscores the magnitude of the current pullback relative to previous corrections.
Market participants will be watching whether outflows stabilize or continue to accelerate in the coming weeks. Key indicators include Bitcoin's spot price performance, broader equity market conditions, and any shifts in macroeconomic policy that could influence appetite for risk assets across institutional portfolios.
Source: The Block
