Crypto investment products lost 726 million dollars last week at an uncertain rate

According to data from CoinShares, crypto investment products are experiencing a significant shift in investor sentiment. In the last trading week, they recorded an impressive net outflow of $726 million, the highest outflow since March 2024.

Bitcoin (BTC) saw the highest spending for the week with a total of $643 million in outflows, while short-Bitcoin saw the least inflow of $3.9 million. This includes the $706 million in negative inflows seen in 12 US spot Bitcoin ETFs last week.

Inflows continue to dry up.

On the other hand, Ethereum saw outflows of less than $98 million last week, driven mainly by the incumbent Greyscale Trust, while inflows from newly issued ETFs continued to dry up.

However, Solana saw the biggest weekly gross of any property, totaling $6.2 million.

From a regional perspective, the US saw the largest outflow, totaling $721 million, followed by Canada, with a smaller negative outflow of $28 million. In contrast, Germany and Switzerland saw positive inflows of $16.3 million and $3.2 million respectively. This highlights the positive sentiment of investors in European countries.

Uncertainty of level cut

Analysts at CoinShares attributed the negative flows in crypto investment products to uncertainty surrounding the Fed rate hike next week.

“We believe this negative sentiment was driven by better-than-expected macroeconomic data last week, which increased the likelihood of a 25% interest rate cut by the US Federal Reserve,” said James Butterfill, Head of Research at CoinShares. He said in the report.

The analyst, however, pointed to a slowdown in daily outflows later in the week as the recently released US employment data came in below expectations – leaving market sentiment “very divided” on a 50bp slowdown.

“The markets are now awaiting Tuesday's Consumer Price Index (CPI) inflation report, with a 50bp cut likely if inflation comes in below expectations,” he added.

At the time of this report, bitcoin was trading at 55,696, an increase of 2.46% in the last 24 hours. On the other hand, Ether (ETH) is trading at $2,314, which shows an increase of less than 2% on the day.