US Digital Asset Outflows Reach $721M Amid Rate Cut Uncertainty, Europe Shows Resilience

Digital
asset
investment
products
experienced
substantial
outflows
totaling
$72
million,
matching
the
largest
recorded
outflow
set
in
March
this
year.
According
to
CoinShares,
this
negative
sentiment
was
influenced
by
stronger-than-expected
macroeconomic
data
from
the
previous
week,
which
heightened
the
likelihood
of
a
25
basis
point
(bp)
interest
rate
cut
by
the
US
Federal
Reserve.
However,
daily
outflows
decelerated
later
in
the
week
as
employment
data
fell
short
of
expectations,
leaving
market
opinions
on
a
potential
50bp
rate
cut
highly
divided.
The
markets
are
now
anticipating
Tuesday’s
Consumer
Price
Index
(CPI)
inflation
report,
with
a
50bp
cut
more
probable
if
inflation
falls
below
expectations.

US
Outflows
and
European
Resilience

The
outflows
were
predominantly
concentrated
in
the
US,
which
saw
a
staggering
$721
million
in
outflows,
alongside
Canada,
which
experienced
outflows
of
$28
million.
In
contrast,
sentiment
in
Europe
remained
more
positive,
with
Germany
and
Switzerland
recording
inflows
of
$16.3
million
and
$3.2
million,
respectively.

Bitcoin
and
Ethereum
Performance

Bitcoin
(BTC)
faced
significant
outflows
totaling
$643
million,
whereas
short-bitcoin
products
saw
minor
inflows
of
$3.9
million.
Ethereum
(ETH)
also
experienced
outflows
amounting
to
$98
million,
primarily
from
the
incumbent
Grayscale
Trust,
while
inflows
from
newly
issued
ETFs
have
almost
completely
dried
up.

Solana’s
Positive
Momentum

Conversely,
Solana
(SOL)
stood
out
with
the
largest
inflows
of
any
digital
asset,
totaling
$6.2
million,
indicating
a
positive
sentiment
towards
the
asset
despite
the
broader
negative
trends.

For
more
details
on
this
report,
visit
the
original
source
on

CoinShares.

Image
source:
Shutterstock