Global crypto investment products record largest weekly outflows since March, totaling $726 million: CoinShares
Quick Take Global crypto investment products witnessed $726 million in net outflows last week amid rate cut uncertainty, according to CoinShares. This matches the largest recorded net outflows set in March, Head of Research James Butterfill noted.
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Micron CEO: AI Completely Redefines the Memory Chip Cycle Logic, Customer Demand Exceeds Company Supply by About 50%
Mehrotra stated that AI has transformed storage chips from a highly cyclical commodity market into an indispensable strategic component of AI infrastructure. Currently, data center clients' purchasing intentions are about 150% of Micron's actual deliverable supply, meaning demand exceeds supply by approximately 50%, and the company’s production capacity still cannot meet market demand. The storage procurement model has also shifted from "price bidding" to collaborative design with clients.
Arbitrum activates ArbOS 61 Elara with optional compliance filters for Orbit chains
The "AI bubble" hasn't burst yet, but this bond veteran has quietly reduced credit bond holdings to the lowest level since 2012: "Don't be too greedy, it's time to pull back."
The yield on bonds issued by U.S. blue-chip companies such as AT&T, JPMorgan Chase, and Amazon is only 0.8 percentage points higher than that of U.S. Treasuries, a premium that is close to the nearly 30-year low reached earlier this year. This means that a widening of the spread by just about 12 basis points would be enough to offset an entire year's excess return of these bonds over Treasuries.
Besant intervenes in the bond market, casting a shadow over Walsh's call for the market to "follow the data"
Basent's announcement to expand Treasury repo operations has caused confusion over policy signals, directly impacting the new communication framework recently established by Federal Reserve Chairman Walsch. Walsch had urged the market to base actions on economic data rather than the Fed's own interest rate forecasts, while the Fed also uses market pricing as a reference for economic assessment. Analysts point out that if the US Treasury manages to suppress long-term yields, it may force the Federal Reserve to resume interest rate hikes.
Crypto prices
More
