Crypto funds endure $812M outflow week amid rate cut expectations

Crypto investment products recorded $812 million in outflows last week as stronger macroeconomic data moderated expectations for Federal Reserve interest rate cuts.

According to CoinShares, Bitcoin and Ethereum bore the brunt of selling pressure with $719 million and $409 million in outflows, respectively. Year-to-date inflows remain strong at $39.6 billion despite the weekly reversal.

Bitcoin and Ethereum lead $812M weekly outflows

Bitcoin investment products faced $719 million in outflows during the week, seeing the largest single-asset redemption.

The selling pressure followed revised GDP and durable goods figures that exceeded expectations, reducing market conviction around aggressive Fed rate cutting. Notably, short-Bitcoin product demand showed no increase.

Month-to-date Bitcoin flows stand at $3.184 billion positive despite weekly weakness, while year-to-date inflows reach $23.98 billion. Assets under management total $170.748 billion across Bitcoin investment products.

Ethereum suffered $409.4 million in weekly outflows and brought September’s monthly total to just $86.2 million in inflows. The slowdown contrasts with year-to-date inflows of $12.174 billion accumulated through August. Total Ethereum product AUM stands at $34.665 billion, reflecting sustained interest despite recent weakness.

Multi-asset products recorded $83.5 million in weekly outflows, with month-to-date redemptions reaching $118.7 million. Year-to-date flows remain slightly negative at -$2 million despite $7.428 billion in AUM.

US dominates outflows while European markets show resilience

The United States led regional outflows with $1.037 billion in weekly redemptions and accounted for more than the total global outflow figure. Month-to-date US flows remain positive at $3.503 billion while year-to-date inflows reach $37.229 billion. Total US AUM stands at $154.413 billion, which is approximately 70% of global digital asset investment product market.

iShares ETFs posted $68 million in weekly outflows despite maintaining $99.283 billion in AUM and $33.203 billion in year-to-date inflows. Grayscale Investments suffered $300 million in weekly redemptions, bringing month-to-date outflows to $344 million. The legacy provider’s year-to-date outflows total $1.954 billion from $32.982 billion AUM.

Fidelity Wise Origin Bitcoin Fund recorded $738 million in weekly outflows, which is the largest single-provider redemption. Month-to-date flows remain positive at $171 million with year-to-date inflows of $211 million. Bitwise Funds Trust posted $169 million in weekly outflows while ARK 21 Shares saw $123 million in redemptions.

Switzerland showed strong positive flows with $126.8 million in weekly inflows and suggested European institutional conviction despite US weakness. Month-to-date Swiss flows reach $85.2 million while year-to-date totals $364 million from $7.334 billion AUM.

Canada contributed $58.6 million in weekly inflows with month-to-date flows of $97.8 million. Year-to-date Canadian inflows total $532 million from $6.769 billion AUM. Germany added $35.5 million weekly with month-to-date inflows of $330.6 million and year-to-date contributions of $1.492 billion from $6.963 billion AUM.

Sweden posted modest $13.4 million in weekly outflows with month-to-date redemptions of $46.1 million. Year-to-date Swedish outflows reach $617 million from $3.659 billion AUM.

Solana and XRP attract inflows ahead of ETF launches

Solana has stood out as the standout performer with $291 million in weekly inflows. This was primarily driven by the anticipation of upcoming US ETF launches. Month-to-date Solana flows reach $628.1 million while year-to-date inflows total $1.869 billion. Total AUM stands at $3.645 billion.

The Solana inflow timing coincides with multiple ETF applications progressing through SEC review processes under new streamlined approval standards. The $291 million weekly figure is approximately 8% of total Solana product AUM.

XRP products attracted $93.1 million in weekly inflows with month-to-date flows of $210.8 million. Year-to-date XRP inflows reach $1.608 billion from $2.722 billion AUM.

Sui posted modest $2.9 million in weekly inflows with month-to-date flows of $19.5 million. Year-to-date Sui inflows total $135 million from $301 million AUM. Cardano contributed $1.3 million weekly, with month-to-date flows of $3.2 million and year-to-date inflows of $46 million from $167 million AUM.

Litecoin and Chainlink showed minimal activity, with $0.2 million and $0.7 million in weekly outflows respectively. Both assets maintain small AUM bases of $231 million and $122 million. The limited institutional interest reflects focus on larger market cap assets with clearer regulatory pathways.

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