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Last week, investment products in digital assets experienced their largest outflow in several months, totaling $1.43 billion, as indicated by CoinShares‘ latest report.
According to CoinShares, this sell-off marks the third-largest outflow for the year and the most significant since March. The firm pointed out that trading activity surged last week, with exchange-traded products (ETPs) generating $38 billion in volume—almost 50% above the yearly average.
James Butterfill, CoinShares’ head of research, mentioned that early-week withdrawals reflected considerable anxiety concerning the Fed’s stance on monetary policy. “There were $2 billion in outflows during the initial days,” he noted, associating this trend with concerns over potential rate hikes.
Nevertheless, market dynamics began to change later in the week after Jerome Powell’s comments at the Jackson Hole Symposium were interpreted more favorably, sparking a partial recovery. Inflows of $594 million on Thursday and Friday helped mitigate the week’s losses.
withdrawals dominated by Bitcoin and Ethereum
Bitcoin was significantly impacted, with $1 billion exiting related products. Ethereum also saw $440 million in outflows, though midweek gains helped ease the downturn.
Despite facing challenges, Ethereum’s month-to-date performance underscores its stronger positioning, having attracted $2.5 billion in August, compared to Bitcoin’s $1 billion in net outflows.
Year-to-date figures show that Ethereum inflows represent 26% of total assets under management, while Bitcoin trails at 11%.
Aside from the two major players, investor interest is fragmented across other significant altcoins.
XRP attracted $25 million in new investments following the US Securities and Exchange Commission (SEC) officially closing its case against Ripple, while Solana and Cronos gained $12 million and $4.4 million, respectively.
Conversely, Sui and Ton lost $12.9 million and $1.5 million, respectively, reflecting the divided sentiment among investors.
Additionally, regional flows revealed varied investor actions last week.
US-based funds like BlackRock’s iShares accounted for most outflows at $1.3 billion, while Sweden and Switzerland contributed $135.5 million and $11.8 million.
In contrast, Germany, Canada, and Hong Kong saw modest inflows of $18.4 million, $3.7 million, and $3.5 million, providing a partial counterbalance.
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