Digital asset investment products saw substantial outflows totaling $726 million, matching the highest recorded outflow from earlier this year in March, according to a report from CoinShares. This significant downturn has been linked to stronger-than-expected macroeconomic data, which has raised concerns about potential actions by the U.S. Federal Reserve.
James Butterfill, CoinShares’ head of research, attributed the negative sentiment to the robust economic data, which increased the likelihood of a 25-basis-point interest rate hike. Despite this, outflows began to slow later in the week as employment data fell short of expectations, leaving the market divided on the possibility of a 50-basis-point rate cut. The upcoming Consumer Price Index (CPI) inflation report will be pivotal, as lower-than-expected inflation could make a larger rate cut more likely.
Digital asset investment products experienced significant outflows totalling US$726m, matching the largest recorded outflow set in March this year.#Bitcoin saw outflows totalling US$643m, with short-bitcoin seeing minor inflows of US$3.9m.#Ethereum saw outflows totalling… pic.twitter.com/Gdu9xzU05Z
— Crypto Granth (@CryptoGranth) September 9, 2024
Bitcoin investment products bore the brunt of the outflows, losing $643 million and bringing the monthly total to $645 million. However, short Bitcoin funds saw a minor inflow of $3.9 million. U.S. Bitcoin-focused exchange-traded funds (ETFs) faced significant pressure, experiencing an eight-day streak of outflows amounting to $721 million. Fidelity’s FBTC fund led the way, with $405 million in outflows last week, followed by Grayscale’s GBTC, which saw $280 million in losses. Bitwise ETFs also experienced losses, totaling around $60 million.
In contrast to the U.S. market, Europe showed more positive sentiment, with Germany and Switzerland recording inflows of $16.3 million and $3.2 million, respectively. Canada, however, mirrored the U.S. trend with outflows totaling $28 million.
Digital asset investment products have faced another week of outflows, marking the second consecutive week of declining investor interest.
The post… Support Us: https://t.co/KZfMloJWDr #cryptonews #cryptocurrencies https://t.co/FPlFt18iYi— Swanky View (@SwankyView) September 9, 2024
Altcoins experienced mixed results. Ethereum-based investment products saw $98 million in outflows, primarily due to Grayscale’s ETHE fund, which lost $111 million. Minimal inflows into other Ethereum ETFs were unable to offset these significant losses, fueling concerns about the demand for Ethereum investment products. Meanwhile, Solana-based products performed well, securing $6.2 million in net inflows, the largest among digital assets. Cardano, despite completing the first phase of its Chang Hard Fork, saw outflows of around $800,000, while Litecoin and XRP products managed to achieve cumulative inflows of $1.7 million.
Key Points:
i. Digital asset investment products saw $726 million in outflows, largely due to stronger-than-expected macroeconomic data and concerns over interest rate hikes.
ii. Bitcoin experienced the largest outflows, losing $643 million, while short Bitcoin funds saw minor inflows.
iii. U.S. Bitcoin ETFs faced significant outflows, with Fidelity’s FBTC fund contributing $405 million in losses.
iv. Ethereum-based products saw $98 million in outflows, driven by Grayscale’s ETHE fund, which lost $111 million.
v. Solana-based products secured $6.2 million in inflows, while Cardano, Litecoin, and XRP had mixed performances.
Lap Fu Ip – Reprinted with permission of Whatfinger News
