The latest data on digital asset investment products reveals that the sector experienced a total of $305 million in outflows in the past week. This negative sentiment was largely driven by stronger-than-expected economic data coming out of the United States, influencing the likelihood of a significant interest rate reduction.
According to CoinShares’ Digital Asset Fund Flows Weekly Report, Bitcoin was the primary target of the negative sentiment, resulting in $319 million in outflows. Ethereum also experienced weekly outflows of $5.7 million, with trading volumes remaining stagnant at only 15% of the levels seen during the US ETF launch week.
The outflows from digital asset investment products were particularly significant in the United States, totaling $318 million for the week. On the other hand, Canada witnessed the highest weekly inflows at $13.2 million. Germany and Sweden experienced smaller outflows of $7.3 million and $4.3 million, respectively, while Switzerland and Brazil saw inflows of $5.5 million and $2.8 million during the same period.
While Bitcoin and Ethereum faced negative sentiment and outflows, other cryptocurrencies saw varying levels of inflows. Solana attracted $7.6 million in inflows, followed by Binance Coin with $0.8 million. Litecoin and Cardano each saw inflows of $0.3 million, indicating a mixed response across different digital assets in the market.
As the Federal Reserve approaches a policy change and interest rate expectations play a more significant role in market sentiment, it is likely that digital asset investment products will continue to be influenced by macroeconomic factors. The ongoing volatility and uncertainty in the market highlight the importance of monitoring economic data and its impact on various asset classes.
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