Digital assets manager CoinShares says that institutional crypto investors pulled hundreds of millions in capital from digital asset products last week.
In its latest Digital Asset Fund Flows report, CoinShares says that institutional crypto investment products suffered $726 million in outflows last week driven by strong economic data releases.
“Digital asset investment products experienced significant outflows totaling US$726m, matching the largest recorded outflow set in March this year. 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 (bp) interest rate cut by the US Federal Reserve.
However, daily outflows slowed later in the week as employment data fell short of expectations, leaving market opinions on a potential 50bp rate cut highly divided. 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.”
The US region led outflows at $721 million, followed by Canada’s $28 million. Germany and Switzerland provided $16.3 million and $3.2 million in inflows respectively.
Bitcoin (BTC) investment products suffered $643 million in outflows, seconded only by Ethereum (ETH), with nearly $100 million in outflows.
“Ethereum saw outflows totaling US$98m, which was almost solely from the incumbent Grayscale Trust, while inflows from the newly issued ETFs have almost completely dried up. Conversely, Solana saw the largest inflows of any asset totaling US$6.2m.”
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Featured Image: Shutterstock/klyaksun/Natalia Siiatovskaia
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