CoinShares: Stronger Macroeconomic Data Led to $305 Million Outflow from Digital Asset Funds

CoinShares latest report reveals that global crypto investment products from asset management firms such as Ark Invest, Bitwise, BlackRock, Fidelity, Grayscale, ProShares, and 21Shares experienced a net outflow of $305 million last week, following a net inflow of $543 million the previous week.

James Butterfill, Head of Research at CoinShares, stated that the outflows were driven by “negative sentiment across all providers and regions,” which stemmed from stronger-than-expected U.S. economic data that “reduced the likelihood of a 50 basis point rate cut.”

Butterfill added, “As the Federal Reserve approaches a rate pivot, we continue to expect this asset class to become increasingly sensitive to interest rate expectations.”

Negative Sentiment Focused on Bitcoin

Butterfill noted that the negative sentiment was primarily focused on Bitcoin, with investment products based on the leading cryptocurrency seeing net outflows of $319 million last week. In contrast, short Bitcoin funds recorded inflows of $4.4 million for the second consecutive week, marking the largest inflow since March.

According to The Blocks report on Saturday, U.S. spot Bitcoin ETFs alone saw net outflows of $277.2 million last week, with ETFs experiencing a monthly net outflow of $94.2 million for the first time since April. This compares to a total net inflow of $3.2 billion in July.

Meanwhile, global Ethereum investment products also experienced net outflows worth $5.7 million last week, with trading volume dropping to 15% of the levels seen during the launch week of the U.S. spot ETF at the end of July, matching pre-launch volumes.

U.S. spot Ethereum ETFs recorded net outflows of $12.4 million last week, with zero flows on Friday, indicating waning market interest in these products.

However, Solana funds bucked the trend with net inflows of $7.6 million last week. According to CoinShares report, blockchain equities also saw net inflows of $11 million, primarily concentrated in Bitcoin miner investment products.