Crypto Fund Outflows Reach $726 Million

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, noted CoinShares Head of Research, James Butterfill. This trend was driven by uncertainty around U.S. rate cuts. “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 stated.

However, daily net outflows slowed later in the week as employment data came in below expectations, leading to divided opinions on a potential 50 basis point cut. “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

Last week’s outflows were almost entirely dominated by the U.S. market, which registered $721 million in net outflows. This included $706.1 million in net outflows from U.S. spot Bitcoin exchange-traded funds alone, marking an eight-day negative streak totaling nearly $1.2 billion.

In contrast, crypto investment products based in Canada also saw $28 million in net outflows. Meanwhile, Germany and Switzerland displayed more positive sentiment, with net inflows of $16.3 million and $3.2 million, respectively—signifying resilience in the European market, according to Butterfill.

Bitcoin funds continued to dominate the market, exhibiting $643 million in net outflows for the week, with slight inflows of $3.9 million for short-bitcoin products. Meanwhile, global Ethereum-based investment products also faced net outflows totaling $98 million, primarily due to Grayscale’s converted ETHE fund, which experienced $111 million in outflows.

Conversely, Solana-based funds defied the trend for the second consecutive week, adding the largest net inflows of any digital asset investment product with $6.2 million last week.