TLDR
- Crypto funds experienced $812 million in outflows last week due to shifting expectations for U.S. monetary policy.
- U.S. markets saw $1 billion in outflows, while European markets like Switzerland, Canada, and Germany saw positive inflows.
- Bitcoin and Ethereum faced significant pressure with outflows of $719 million and $409 million respectively.
- Despite the overall market decline, year-to-date inflows for crypto funds remain strong at $39.6 billion.
- Solana attracted $291 million in inflows, while XRP saw $93.1 million, bucking the trend of broader market outflows.
Crypto funds recorded $812 million in outflows last week, as investor sentiment cooled. The pullback followed stronger-than-expected U.S. economic data, which affected expectations for interest rate cuts. Despite the decline, year-to-date inflows still stand at $39.6 billion, nearing 2023’s record of $48.6 billion.
Crypto Outflows Contrast Europe’s Growth
The U.S. experienced the largest outflows, with $1 billion exiting the market. Investor sentiment in the U.S. was negatively impacted by macroeconomic uncertainty and changing interest rate expectations. In contrast, European markets saw inflows, signaling resilience in global crypto funds.
https://x.com/CoinSharesCo/status/1972634336198320397
Switzerland led with inflows of $126.8 million, followed by Canada with $58.6 million. Germany also recorded positive sentiment, with $35.5 million in inflows. These regions demonstrate a growing demand for digital assets, despite challenges in the U.S. market.
Bitcoin and Ethereum Under Pressure
Bitcoin was heavily affected, losing $719 million in outflows last week. Despite this, CoinShares noted that there is little demand for short-bitcoin products, indicating low bearish conviction. Ethereum also faced difficulties, with $409 million in outflows, halting its year-to-date inflows of $12 billion.
The pressure on Bitcoin and Ethereum suggests investor caution as markets adjust to shifting monetary policy. Both digital assets remain dominant, but short-term sentiment has weakened amid recalibrated expectations.
Solana and XRP Defy Market Trends
In contrast to the broader outflows, Solana experienced $291 million in inflows. CoinShares attributed this to growing optimism about the network’s scalability and efficiency. XRP also saw a strong performance, with $93.1 million in inflows, driven by anticipation of regulatory clarity and upcoming ETF launches.
These developments show that, while crypto funds faced outflows overall, interest in alternative digital assets remains strong.
