Global crypto investment products record largest weekly outflows since March, totaling $726 million: CoinShares

Crypto funds at asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered net outflows totaling $726 million globally last week, according to CoinShares’ latest report.

The figures match the largest recorded net outflows set in March, CoinShares Head of Research James Butterfill noted , driven by U.S. rate cut uncertainty. “We believe this negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point interest rate cut by the U.S. Federal Reserve,” Butterfill said.

However, daily net outflows slowed later in the week as employment data came in below expectations, leaving opinions on a potential 50 basis point cut divided, Butterfill added. “The markets are now awaiting Tuesday’s Consumer Price Index (CPI) inflation report, with a 50bp cut more likely if inflation comes in below expectations.”

Weekly crypto asset flows. Images: CoinShares .

US market continues to dominate while Europe 'shows resilience'

Last week’s figures were almost entirely dominated by the U.S. market, registering $721 million in net outflows. This includes $706.1 million in net outflows from the U.S. spot Bitcoin BTC +1.05% exchange-traded funds alone, with their eight-day negative streak now totaling nearly $1.2 billion.

Crypto investment products based in Canada also witnessed net outflows of $28 million last week. Meanwhile, funds in Germany and Switzerland saw more positive sentiment with net inflows of $16.3 million and $3.2 million, respectively — a sign of the European market showing resilience, according to Butterfill.

Bitcoin funds also continued to dominate activity, registering net outflows of $643 million for the week alongside minor net inflows of $3.9 million for short-bitcoin products.

Global Ethereum ETH +0.46% -based investment products also generated net outflows last week, totaling $98 million. This was mainly due to Grayscale’s converted ETHE fund, which saw $111 million in net outflows for the week while other spot Ethereum ETF inflows “almost completely dried up,” Butterfill noted.

However, Solana-based funds bucked the trend for the second week in a row, adding the largest net inflows of any digital asset investment product with $6.2 million last week.