Digital asset investment products experienced significant outflows totaling $726 million, matching the highest outflow earlier this year in March, as reported by CoinShares. The negative sentiment was attributed to stronger macroeconomic data, increasing the likelihood of a 25-basis point interest rate hike by the US Federal Reserve. The markets are now anxiously awaiting the Consumer Price Index inflation report to determine the next course of action.
Bitcoin led the outflows, losing $643 million, with US Bitcoin exchange-traded funds (ETFs) experiencing an eight-day outflow streak totaling $721 million. Fidelity’s FBTC fund and Grayscale’s GBTC saw significant outflows, with Bitwise ETFs following closely behind. Canada also saw outflows, while Europe experienced inflows, with Germany and Switzerland leading the positive sentiment.
Ethereum-based investment products recorded $98 million in net outflows, primarily due to Grayscale’s converted ETHE fund losing $111 million. However, Solana-based investment products saw $6.2 million in net inflows, the largest among digital asset products. Other digital assets like Cardano had minor outflows despite completing a significant milestone, while Litecoin and XRP products saw cumulative inflows.
Overall, the market sentiment towards digital asset investment products remains mixed, with significant outflows in some areas and inflows in others. The upcoming Consumer Price Index inflation report will provide further clarity on the direction of the market, with investors closely monitoring the developments to make informed decisions on their investments.
