Despite slowing outflows, investor sentiment is still very bearish, impacting year-to-date inflows and total assets under management. Meanwhile, South Korean presidential frontrunner Han Dong-hoon is advocating for Bitcoin ETFs and crypto deregulation to position South Korea as a global leader in the industry. In Spain, BBVA received regulatory approval to offer Bitcoin and Ethereum trading services, expanding its crypto offerings amid the EU’s MiCA regulatory transition. Traditional financial institutions are making it a clear priority to embrace digital assets despite the current outflows. Cryptocurrency ETPs Continue Bleeding Cryptocurrency exchange-traded products (ETPs) experienced their fourth consecutive week of outflows after shedding $876 million in the past trading week. This continued decline happened after record outflows of $2.9 billion the week before, bringing the four-week total to a staggering $4.75 billion, according to data from CoinShares on March 10. Despite the slower pace of outflows, investor sentiment is still deeply bearish, and James Butterfill, head of research at CoinShares, noticed signs of market capitulation. (Source: CoinShares ) Bitcoin ETPs were the primary driver of this outflow trend, and accounted for $756 million, or 85% of last week's total outflows. Additionally, short-Bitcoin ETPs recorded outflows of $19.8 million, the highest since December of 2024. The sustained outflows greatly impacted year-to-date inflows, which have now dropped to $2.6 billion. Meanwhile, total assets under management (AUM) declined by $39 billion to $142 billion, which is the lowest level since mid-November 2024. This decline is attributed to both sustained outflows and negative price movements in the market. The bearish sentiment was not limited to Bitcoin, as a broad range of altcoins also recorded large outflows. Ethereum ETPs saw $89 million in withdrawals, while Tron and Aave ETPs registered outflows of $32 million and $2.4 million, respectively. However, some altcoins managed to attract investor interest despite the broader market decline. Solana, XRP, and Sui ETPs recorded inflows of $16.4 million, $5.6 million, and $2.7 million, respectively. These inflows suggest that some investors are still looking for exposure to select assets even as the broader market struggles with continued outflows. (Source: CoinShares ) While outflows have slowed compared to the previous week, the market is still under a lot of pressure, with investors extremely cautious amid ongoing uncertainty. South Korean Candidate Pushes for Bitcoin ETFs Despite the fact that crypto ETPs have been struggling, a leading candidate in South Korea’s upcoming presidential elections, Han Dong-hoon, recently outlined his stance on cryptocurrency, and advocated for deregulation and the approval of Bitcoin ETFs. In an interview on March 9, Han pointed out that there is a need for South Korea to position itself at the forefront of crypto innovation by easing existing regulatory constraints. He stated that cryptocurrency regulations should be relaxed, and added that introducing Bitcoin ETFs could facilitate institutional adoption and allow corporations to invest in digital assets. Han’s pro-crypto stance is seen by many as an effort to appeal to younger voters in the South Korean political landscape where neither the ruling party nor the opposition has nominated a presidential candidate because of ongoing legal disputes. With the potential for an election later this year, Han is considered a frontrunner for the PPP nomination and could face Democratic Party leader Lee Jae-myung in a national poll. Han Dong-hoon Han also mentioned South Korea’s strong digital literacy, and argued that the nation’s rapid crypto adoption is a reflection of its technological advancement. He pointed out that crypto’s decentralized nature makes it more challenging for governments to control and suggested that excessive regulation could stifle innovation. He also took credit for the National Assembly’s decision to delay the implementation of a crypto tax until 2025, and stated that his opposition to the measure ultimately led to bipartisan support for the delay. Han himself once served as Attorney-General, and criticized lawmakers who once demanded the publication of a list of citizens who invested in cryptocurrencies. He dismissed the request as absurd and argued that many policymakers lack a fundamental understanding of digital assets. He is especially concerned about whether regulatory bodies, including the Department of Justice, truly understand the complexities of the crypto industry, and warned that misguided regulation could undermine South Korea’s digital economy. Han also once again mentioned his vision for South Korea to become a global leader in the crypto sector, warning that restrictive policies could drive capital out of the country. He placed a lot of emphasis on his belief that those who seek to impose excessive regulations do not understand the fundamental principles of cryptocurrency and that regulatory missteps could cause South Korea to miss its opportunity to establish global leadership in the industry. Spain’s BBVA Expands Crypto Services Banco Bilbao Vizcaya Argentaria (BBVA) announced on March 10 that it received approval from Spain’s securities regulator, the Comisión Nacional del Mercado de Valores (CNMV), to offer Bitcoin and Ethereum trading services to its customers. BBVA is Spain’s second-largest bank, and will now allow its users to buy, sell, and manage digital assets through its mobile app. The bank also developed its own cryptographic key custody platform, ensuring full control over customer holdings without third-party involvement. The initial rollout will be limited to a select group of users before expanding to all private customers across Spain in the coming months. BBVA’s involvement in the crypto sector started in Switzerland, where it launched Bitcoin custody and trading services for private banking clients in June of 2021. Over time, the Swiss branch expanded its offerings to include Ethereum and the USDC stablecoin. More recently, BBVA’s Turkish subsidiary, Garanti BBVA Kripto, introduced crypto trading services to the public in January of 2025. Banco Bilbao Vizcaya Argentaria (BBVA ) The move is taking place after the Markets in Crypto-Assets Regulation (MiCA) reached full implementation at the end of 2024. Although the framework is now in effect, crypto firms operating in the European Union have until July 2026 to fully comply with its requirements under an 18-month transitional phase. In response, traditional finance institutions and crypto-native companies have been working to secure MiCA licenses and integrate digital asset services. Prime brokerage Hidden Road got its MiCA license in the Netherlands on Dec. 30 of2024, followed by Standard Chartered in Luxembourg on Jan. 9 and Boerse Stuttgart Digital Custody in Germany on Jan. 17. Major crypto exchanges are also adapting to the new regulatory environment. In January 2025, OKX, Crypto.com, and HashKey secured MiCA approval, while Bybit, which recently faced the largest hack in crypto history, was removed from France’s blacklist . It is also interested in obtaining a MiCA license. With BBVA’s latest approval in Spain, the bank’s expanding crypto services proves that there is certainly a growing trend among traditional financial institutions to embrace digital assets under the new European regulatory framework.
