Crypto exchange-traded products faced $2 billion in global outflows last week amid macroeconomic uncertainty. BlackRock’s Bitcoin ETF saw a record $463.1 million single-day withdrawal. Bitcoin and Ethereum ETPs tumbled as assets under management dropped. ETF flows are tied to market direction, impacted by broader macro factors and policies.

Digital asset ETPs plunged from $264 billion to $191 billion, a 27% decline, with $3.2 billion in outflows over three weeks. Hawkish monetary policy, whale selling, and global risk aversion led investors to de-risk. Demand shifted to multi-asset and short-Bitcoin strategies amidst volatility.

The U.S. accounted for $1.97 billion of global outflows, followed by Switzerland with $39.9 million and Hong Kong with $12.3 million. Germany attracted $13.2 million in inflows. ETF flows will depend on economic data, policy decisions, and market sentiment, influenced by macro factors like Fed stance and price movements.

ETF flows reflect a mix of portfolio rebalancing, hedging, rotations, and arbitrage. Short-term flows shouldn’t be overanalyzed as they cater to diverse users. U.S. spot crypto ETPs have attracted over $100 billion in under two years from retail investors, prop-trading firms, and long-term allocators.

Read more at Yahoo Finance: BlackRock’s Bitcoin ETF Sheds Record $463M as Crypto Funds See Worst Week Since February