This week, digital asset ETP saw its first capital outflow, with $952 million leaving due to regulatory concerns.

In the last week, digital asset investment products experienced their first outflow of funds in four weeks, amounting to $952 million. This wave of withdrawal mainly reflects the market's anxiety over several issues.

First, the slow progress of the Clarity Act in the United States. This bill was originally expected to bring a clearer regulatory framework to the digital asset market, but it has not been passed, resulting in a policy outlook for the entire industry filled with uncertainty. Exchange-Traded Products (ETPs), as connectors between traditional finance and the crypto market, are the most sensitive to the regulatory environment — the fluctuations in policy have directly undermined investor confidence.

Secondly, the market is still digesting the pressure from the continuous sell-off by large whale investors. The appearance of large sell orders often triggers a chain reaction, leading small retail investors to follow suit and stop losses, ultimately resulting in a larger scale of capital outflow.

From the data, the total managed assets of ETP are currently $46.7 billion, while the market originally estimated that it would reach $48.7 billion in 2024. If the current trend of outflows continues, it will become quite difficult to break through the historical highs. In the short term, it may be hard for capital inflows to return to last year's level of enthusiasm.