US Digital Asset Outflows Hit $721M as Europe Remains Strong

Digital asset investment products recorded significant outflows amounting to $72 million, matching the largest outflow noted in March of this year. According to CoinShares, this adverse sentiment was prompted by stronger-than-anticipated macroeconomic data from the prior week, which increased the probability of a 25 basis point (bp) interest rate cut by the US Federal Reserve. However, daily outflows slowed later in the week as employment data underperformed expectations, leaving market views on a possible 50bp rate cut notably split. Market participants are now looking forward to Tuesday’s Consumer Price Index (CPI) inflation report, with a 50bp cut becoming more likely if inflation data comes in lower than expected.

US Outflows and European Resilience

The majority of the outflows were focused in the US, which witnessed an astonishing $721 million in outflows, along with Canada, experiencing outflows of $28 million. In contrast, European sentiment remained comparatively upbeat, with Germany and Switzerland reporting inflows of $16.3 million and $3.2 million, respectively.

Bitcoin and Ethereum Performance

Bitcoin (BTC) saw considerable outflows totaling $643 million, while short-bitcoin products registered minor inflows of $3.9 million. Ethereum (ETH) also encountered outflows of $98 million, mainly from the well-established Grayscale Trust, as inflows from newly launched ETFs have nearly disappeared.

Solana’s Positive Momentum

On a different note, Solana (SOL) emerged as a standout performer with the highest inflows of any digital asset, totaling $6.2 million, reflecting a positive outlook towards the asset despite the prevailing negative trends.

For more information on this report, please visit the original source on CoinShares.

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