Global crypto investment products at asset managers such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares and 21Shares returned to net outflows last week, totaling $305 million, following net inflows of $543 million the week before, according to CoinShares' latest report.
The outflows came amid “widespread negative sentiment evident across various providers and regions,” CoinShares Head of Research James Butterfill said, driven by stronger-than-expected economic data in the U.S., which “diminished the likelihood of a 50-basis point interest rate cut.”
“We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the Fed gets closer to a pivot,” Butterfill added.
Weekly crypto asset flows. Images: CoinShares.
Negative sentiment focused on bitcoin
According to Butterfill, the negative sentiment was focused on bitcoin, with investment products based on the foremost cryptocurrency witnessing $319 million in net outflows last week. Additionally, short bitcoin funds registered a second week of consecutive inflows totaling $4.4 million—the largest since March.
Net outflows of $277.2 million from the U.S. spot Bitcoin BTC
+0.68%
exchange-traded funds alone last week saw the ETFs slump to monthly negative flows of $94.2 million for the first time since April, as The Block reported on Saturday. That compares to $3.2 billion worth of total net inflows in July.
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Meanwhile, global Ethereum ETH
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investment products also saw $5.7 million worth of net outflows last week, with trading volume dropping to just 15% of U.S. spot ETF launch week levels in late July and comparable to the volumes witnessed before those launched, Butterfill wrote.
The U.S. spot Ethereum ETFs logged net outflows of $12.4 million last week and zero flows on Friday, with interest in the products seemingly dwindling.
However, Solana-based funds bucked the trend, adding $7.6 million in net inflows last week. Blockchain equities also witnessed net inflows of $11 million, specifically focused on bitcoin miner investment products, according to the CoinShares report.
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