Digital asset investment products saw $812 million in outflows last week, according to market data, as stronger-than-expected U.S. economic figures tempered expectations for two interest rate cuts this year. The move marked a sharp reversal from recent weeks of inflows that had lifted year-to-date totals near last year’s record levels.
U.S. Leads Global Digital Asset Funds Outflow
The United States accounted for the largest share of redemptions, with nearly $1 billion pulled from crypto-linked funds. By contrast, other regions held firmer. Switzerland recorded inflows of $126.8 million, followed by Canada with $58.6 million and Germany with $35.5 million. Analysts said the uneven regional trends highlighted investor caution in the U.S. while sentiment abroad remained comparatively resilient.
Bitcoin and Ethereum Weigh Heavily
Bitcoin products were the hardest hit, registering $719 million in outflows. However, data showed no corresponding rise in demand for short-Bitcoin products, suggesting the pullback may be temporary rather than driven by strongly negative sentiment. Ethereum also saw significant withdrawals, with $409 million exiting last week. The decline nearly stalled Ethereum’s year-to-date inflows of $12 billion, leaving September inflows at just $86.2 million.
Altcoins Buck the Trend
While major tokens struggled, some altcoins attracted investor interest. Solana funds drew $291 million in inflows, the largest among digital assets, while XRP recorded $93.1 million. Analysts said the gains may reflect positioning ahead of anticipated U.S. exchange-traded fund launches tied to those assets.
Broader Context
Despite the week’s pullback, digital asset funds have seen $39.6 billion in inflows so far this year, supported by earlier momentum that could bring totals close to 2024’s record $48.6 billion. Market watchers noted that the latest shift was driven less by direct sentiment on cryptocurrencies and more by macroeconomic developments, particularly revised U.S. GDP and durable goods data that lowered expectations for Federal Reserve rate cuts. At present, the uneven flows point to cautious investor positioning as markets await further signals from central banks and regulatory approvals tied to crypto investment products.
