A recent report revealed that crypto-based investment products saw significant outflows last week. The negative flows, led by the largest cryptocurrency by market capitalization, surpassed $300 million on August 31, suggesting a broader adverse sentiment among investors in various regions.<\/p>\n
European digital asset manager CoinShares\u2019 most recent report<\/a> showed that crypto investment products were hit with $305 million in outflows in the past week. According to data from different providers and regions, the outflows hinted at a widespread negative sentiment, seemingly prompted by stronger macro data in the US.<\/p>\n The adverse sentiment appears to be driven by \u201cstronger-than-expected economic data in the US,\u201d which reduced the expectation of a 50-basis point interest rate cut this month.<\/p>\n\n The US led the negative net flows regionally with $318 million outflows<\/a> from August 26 to August 31. Additionally, the country has seen the highest outflows Month-to-Date (MTD), registering $65 million in negative flows.<\/p>\n Comparatively, Germany and Sweden saw $7.3 million and $4.3 million in outflows last week. These countries also ranked second and third in MTD negative flows, with $13.4 and $1.3 million in outflows, respectively.<\/p>\n Meanwhile, Canada led the positive net flows with inflows totaling $13.2 million despite being the country with the largest outflows Year-to-Date (YTD). The digital asset manager expects crypto assets and the market sentiment to continue being highly sensitive to the interest rate expectations:<\/p>\n \u00a0We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot.<\/p>\n Per the report, Bitcoin, the flagship cryptocurrency, led the negative sentiment with $319 million in outflows, followed by Ethereum\u2019s $5.7 million. The downturn was focused on Bitcoin<\/a> ETFs (exchange-traded funds), which registered most of the losses by investment products.<\/p>\n\n ARK 21Shared Bitcoin ETF (ARKB) was the exchange-traded product (ETP) with the largest negative flow, seeing $220.95 million in outflows. Grayscale Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF (BITO) saw $119.19 million and $78.28 million respectively.<\/p>\n Nonetheless, iShares Bitcoin Trust ETF (IBIT) topped the inflows list with a remarkable $210.55 million positive net flow. Similarly, Short BTC investment products registered a second consecutive week of inflows with $4.4 million, the largest since March 2024.<\/p>\n Ethereum\u2019s trading volumes were stagnated in the past week. Per the report, ETH-based products saw volume levels comparable to those before the spot ETH ETFs launched<\/a>. Moreover, these levels only accounted for 15% of the volume registered on US ETFs launch week.<\/p>\nNegative Sentiment Focuses On Bitcoin<\/h2>\n