Cryptocurrency investment products saw heavy outflows, with total market capitalization dropping by 6%. Bitcoin and Ether funds experienced almost $1 billion in outflows, the largest so far this year. Spot Bitcoin ETFs led the sell-off, with $817.9 million leaving the market. The decline coincided with a broader market weakness.

Bitcoin funds continued to see losses, with over $1 billion in outflows this week. This pushed Bitcoin ETF flows into negative territory for January. Despite the sell-off, Bitcoin ETFs still hold significant assets under management, accounting for 6.5% of Bitcoin’s total market capitalization.

Altcoin investment products also faced outflows, with Ether ETFs losing $155.6 million and XRP funds shedding $92.9 million. Solana ETFs saw smaller outflows. Ether ETFs account for about 5% of the asset’s market capitalization. Overall, crypto ETPs have a total AUM of $178 billion.

The total crypto market capitalization stood at about $2.92 trillion, down from over $3 trillion recently. High leverage exposure and market sell-offs, including Microsoft’s impact, contributed to the downturn. Decentralized derivatives exchange Hyperliquid saw $87.1 million in long positions wiped out quickly.

Read more at Cointelegraph: Crypto ETFs Shed Over $1B In Daily Outflows As Market Slides