Global crypto investment products see $305 million in weekly outflows: CoinShares

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 +0.30% 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.

Meanwhile, global Ethereum ETH +1.05% 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.