Crypto ETPs Slide as Bitcoin Hits a Seven-Month Low

Macro Backdrop: A Broad Reset in Risk Appetite

Last week marked one of the sharpest resets in global risk sentiment this year, and cryptocurrencies bore the brunt of it. Bitcoin briefly fell below 90,000 dollars before sliding toward 83,000 dollars by Friday, reaching its lowest level since April. The move reflected a combination of macro headwinds: markets grew increasingly concerned that Federal Reserve officials were preparing to delay rate cuts, with the probability of a December reduction falling from more than 90 percent a month ago to roughly 47 percent.

Pressure intensified as technology stocks, particularly AI-linked names, entered a pronounced correction following weeks of warnings about overstretched valuations and exaggerated datacenter investment plans. Several private economic releases pointed to a cooling US labor market and heightened uncertainty around consumer strength, further undermining sentiment in high-beta assets.

Against this backdrop, Bitcoin dropped nearly 30 percent from its October peak above 126,000 dollars and is now on track for its first annual decline since 2022. Its correlation with the technology sector surged to an 80 percent six-month high, underscoring its recent vulnerability to macro-driven risk aversion rather than its historical positioning as a store of value.

European Crypto ETPs: Heavy Losses Across the Board

The broad selloff translated directly into pronounced declines in Europe-listed crypto ETPs. Bitcoin, Ethereum, and XRP products all posted substantial losses as investors pulled capital from speculative exposures and rotated toward safer assets.

Group-level data shows:

• Cryptocurrency ETPs fell 12.92 percent week-to-date, with 212.6 million euros in outflows.
• Bitcoin-focused ETPs declined 12.79 percent, though they retained a small 38.9 million euros of net inflows.
• Ethereum ETPs dropped 14.71 percent with notable weekly outflows.
• XRP ETPs lost 16.18 percent but continued to gather year-to-date inflows, reflecting selective investor interest.

Fund-Level Highlights

Notably, XRP ETPs attracted net positive flows, bucking the trend across the crypto complex as investors repositioned into assets less correlated to tech-sector swings.

Bitcoin ETPs

• Bitwise Physical Bitcoin ETP (BTCE) fell 13.51 percent with 11.38 million euros leaving the product.
• CoinShares XBT Provider Bitcoin Tracker Euro ETP (BITCOIN XBTE) dropped 14.67 percent and saw withdrawals of 10.48 million euros.
• 21Shares Bitcoin ETP (ABTC) declined 13.57 percent with outflows of 1.33 million euros.

Ethereum ETPs

• CoinShares XBT Provider Ethereum Tracker Euro ETP (ETHEREUM XBTE) slid 17.29 percent and lost 3.64 million euros.
• CoinShares Physical Staked Ethereum ETP (ETHE) decreased 13.86 percent with outflows of 2.36 million euros.
• 21Shares Ethereum Staking ETP (AETH) fell 14.58 percent with withdrawals of 5.09 million euros.

XRP ETFs

• 21Shares XRP ETP (AXRP) lost 16.64 percent but gained 0.64 million euros in fresh inflows.
• WisdomTree Physical XRP (WXRP) declined 15.62 percent while attracting 1.14 million euros.
• Bitwise Physical XRP ETP (GXRP) slipped 16.63 percent with a small 0.14 million-euro inflow.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.