Crypto ETPs Face $173M Outflows Amid Altcoin Surge
In the latest cryptocurrency market developments, investment products dedicated to digital assets experienced a fourth consecutive week of capital withdrawals last week. This occurred as Bitcoin’s price faltered below the $70,000 threshold. Meanwhile, Aave’s founder, Stani Kulechov, highlighted the potential for decentralized finance (DeFi) to capitalize on tokenizing up to $50 trillion in abundant assets. Additionally, Strategy’s executive Michael Saylor continues to defy the prevailing market downturn by indicating plans for further Bitcoin acquisitions.
Crypto Investment Funds Mark Another Week of Losses as Bitcoin Falls Under $70,000
Cryptocurrency funds were unable to draw sufficient new investments last week to counteract the prevailing bearish mood, resulting in yet another week of net outflows—the fourth in a row.
Exchange-traded products (ETPs) focused on cryptocurrencies saw $173 million in outflows, a slight decrease from the $187 million recorded in the prior week, according to a Monday report from CoinShares.
While the outflows in the most recent two weeks were comparatively modest, the cumulative total over the past four weeks has now reached approximately $3.8 billion. Assets under management (AUM) for these products currently sit at around $133 billion, marking the lowest level since April 2025.
James Butterfill, head of research at CoinShares, pointed to widespread market pessimism and persistent price declines as the primary drivers behind last week’s outflows. Bitcoin opened the week at $70,000 but plummeted to a low of $65,000 by Thursday, based on data from Coinbase.
The downturn in sentiment was largely propelled by Bitcoin-specific ETPs, which experienced $133.3 million in outflows, causing their AUM to drop to roughly $106 billion.
The situation appeared even more dire for United States spot Bitcoin exchange-traded funds (ETFs), which recorded outflows nearing $360 million over the course of the week, per data from SoSoValue.
Ether-focused funds mirrored Bitcoin’s struggles, with $85 million in outflows. In contrast, United States spot Ether ETFs managed to attract modest inflows of $10 million.
Breaking the negative pattern, XRP and Solana ETPs stood out as the leading gainers, securing inflows of $33.4 million and $31 million, respectively. These altcoins demonstrated resilience and growing investor interest even as major assets like Bitcoin and Ether faced selling pressure.
Aave Founder Envisions $50 Trillion ‘Abundance Asset’ Opportunity for DeFi Growth
Stani Kulechov, founder of the prominent decentralized lending protocol Aave, proposed that DeFi stands to gain immensely from the tokenization of $50 trillion in so-called “abundance assets,” including solar energy infrastructure, by the year 2050. This process would introduce an entirely new category of blockchain-based collateral.
In a Sunday post on X, Kulechov expressed optimism that while scarce assets will keep expanding, the true transformative power of tokenization lies in abundant resources. He emphasized that these assets could unlock unprecedented opportunities in on-chain finance.
“Capital is eager for fresh collateral options, and the global economy is primed for a shift that on-chain lending protocols like Aave can seize and propel forward,” stated the Aave Labs leader. He projected that solar-related assets alone might represent $15 to $30 trillion within the broader $50 trillion abundance asset sector by mid-century.
Kulechov illustrated a practical application: solar debt financiers could tokenize a $100 million solar initiative while securing $70 million in loans to fund additional ventures. This would provide on-chain depositors with access to highly scalable, low-risk yields backed by diversified portfolios.
“An investor could purchase tokenized solar assets, retain them for three years, sell at a gain, and swiftly reinvest in fresh projects,” Kulechov explained. He contended that this framework would dramatically enhance capital efficiency, fostering a virtuous cycle of reinvestment and expansion in renewable energy and DeFi alike.
Strategy’s Michael Saylor Hints at Continued Bitcoin Acquisitions Amid Market Slump
Michael Saylor, co-founder of the Bitcoin treasury firm Strategy, indicated that his company persists in accumulating BTC despite the current market correction. This announcement comes during the 12th straight week of their buying activities.
On Sunday, Saylor shared Strategy’s BTC accumulation chart on the X platform. This visual has become a hallmark of the company’s purchase announcements, with the latest post teasing their forthcoming 99th Bitcoin transaction.
The firm’s most recent acquisition took place on February 9, involving the purchase of 1,142 BTC at a cost exceeding $90 million. This boosted their overall holdings to 714,644 BTC, valued at approximately $49.3 billion based on prevailing market rates at the time.
Saylor’s steadfast approach underscores a long-term bullish outlook on Bitcoin, even as broader market conditions remain volatile. By consistently adding to their stack during dips, Strategy exemplifies a strategy of dollar-cost averaging on a corporate scale, potentially influencing other institutional investors to follow suit.
