TLDR
- Bitcoin and Ethereum saw major outflows totaling $1.1 billion last week.
- Solana attracted $291 million in inflows due to upcoming ETF launches.
- Ethereum saw inflows slow to just $86.2 million for September.
- Countries like Switzerland and Canada show resilience with steady inflows.
Last week, the cryptocurrency asset market experienced a notable pullback, led by Bitcoin, as investment products saw outflows totaling $812 million. Despite this short-term dip, the year-to-date figures remain positive, with $39.6 billion in inflows. This suggests continued investor interest in the digital asset market, although market conditions are still volatile.
U.S. Market Struggles as Rate Cut Expectations Fade
The U.S. market was the main driver behind the outflows, with $1 billion in losses. The decrease in investment activity coincides with a shift in expectations regarding U.S. interest rates. Analysts have downgraded the likelihood of two rate cuts in 2025, following stronger-than-expected macroeconomic data, including revised GDP figures. While the U.S. faces challenges, the market’s performance elsewhere tells a different story.
Countries like Switzerland, Canada, and Germany showed resilience, attracting significant inflows. Specifically, Switzerland saw $126.8 million, Canada $58.6 million, and Germany $35.5 million. This indicates that investor confidence outside the U.S. remains strong.
Bitcoin and Ethereum Struggle
Bitcoin and Ethereum, two of the largest digital assets, were hit hardest by the outflows. Bitcoin saw the largest weekly decline, with $719 million leaving investment products. Despite this, there was no surge in short positions against the cryptocurrency. Ethereum also experienced considerable outflows, with $409 million leaving its investment products. The slowdown in Ethereum’s inflows was notable, as only $86.2 million entered in September, compared to $12 billion year-to-date.
This dip comes as both Bitcoin and Ethereum struggle in the spot market. Investors are showing caution, and market conditions remain uncertain for both assets.
Solana and XRP Stand Out with Strong Inflows
While Bitcoin and Ethereum faced challenges, Solana and XRP emerged as the top performers last week. Solana recorded $291 million in inflows, bolstered by expectations surrounding upcoming U.S. ETF launches in October. This positive momentum has pushed Solana’s year-to-date inflows to $1.86 billion, with assets under management for its ETPs now reaching $3.64 billion.
Similarly, XRP saw $93.1 million in inflows, benefiting from similar ETF-related optimism. XRP’s total monthly flows now stand at $210 million, with yearly flows at $1.6 billion. Assets under management for XRP ETPs now amount to $2.72 billion. Other crypto assets, including Cardano and SUI, also registered positive flows, highlighting growing interest in these altcoins.
