Alvin Lang
September 9, 2024 11:50
Digital asset investment products faced significant outflows, mainly from the US, amid interest rate cut uncertainty, but Europe showed resilience.
Digital asset investment products experienced significant outflows totaling $72 million, matching the largest outflow recorded in March of this year. According to CoinShares, the negative sentiment was influenced by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25bp (basis point) rate cut by the US Federal Reserve. However, the daily outflows decreased during the week as employment data fell short of expectations, leaving the market with a wide gap in opinion on a potential 50bp rate cut. The market is now looking forward to the Consumer Price Index (CPI) inflation report on Tuesday, with a 50bp cut becoming more likely if inflation falls below expectations.
US outflow and Europe’s resilience
Outflows were concentrated mainly in the US, where there was a massive $721 million inflows, and Canada, where $28 million flowed in. In contrast, sentiment in Europe was more positive, with Germany and Switzerland recording $16.3 million and $3.2 million inflows respectively.
Bitcoin and Ethereum Performance
Bitcoin (BTC) faced significant outflows totaling $643 million, while short Bitcoin products saw modest inflows of $3.9 million. Ethereum (ETH) also experienced outflows of $98 million, mainly from incumbent Grayscale Trust, while inflows into newly issued ETFs almost completely dried up.
Solana’s positive momentum
On the other hand, Solana (SOL) saw the highest inflows among all digital assets with $6.2 million, showing positive sentiment towards the asset despite the overall negative trend.
For more information about this report, please visit the original source at CoinShares.
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