Global Crypto Investment Products Report

Global crypto investment products from asset managers like Ark Invest, Bitwise, BlackRock, and others experienced net outflows totaling $305 million last week, following a week of inflows totaling $543 million, according to CoinShares’ latest report.

The report highlights that these outflows occurred due to “widespread negative sentiment across various providers and regions,” according to CoinShares’ Head of Research, James Butterfill. This sentiment was largely driven by better-than-expected economic data from the U.S., which decreased the chance of a 50-basis point interest rate cut.

“We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the Fed approaches a pivot,” Butterfill noted.

Negative Sentiment on Bitcoin

Butterfill specified that the negative sentiment predominantly affected Bitcoin, which saw $319 million in net outflows last week. Concurrently, short Bitcoin funds saw inflows of $4.4 million, marking their largest total since March.

In detail, U.S. spot Bitcoin Exchange-Traded Funds (ETFs) faced net outflows of $277.2 million, pushing them to monthly negative flows of $94.2 million—the first such occurrence since April. This starkly contrasts with $3.2 billion in total net inflows recorded in July.

Global Ethereum investment products also faced challenges, witnessing net outflows of $5.7 million last week. Trading volume has dropped to 15% of levels seen during the U.S. spot ETF launch in late July.

U.S. spot Ethereum ETFs specifically reported $12.4 million in net outflows last week, with nil flows logged on Friday, indicating waning interest in these products.

In a positive note, Solana-based funds attracted $7.6 million in net inflows last week, while blockchain-focused equities saw net inflows of $11 million, particularly in Bitcoin miner investment products according to the CoinShares report.