Ethereum

Solana

DeFi

Planet

James

<div class="intro-text">
 Digital asset investment products faced significant outflows last week, totaling $305 million, as reduced expectations for a U.S. interest rate cut, following stronger economic data, dampened market sentiment. 
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According to CoinShares, this decline reflects a broader negative trend affecting various providers and regions within the crypto market.
In a<a href="https://blog.coinshares.com/volume-198-digital-asset-fund-flows-weekly-report-103ff715bd07" rel="noopener noreferrer nofollow"> blog post dated September 2</a>, James Butterfill, Head of Research at CoinShares, attributed the recent outflows to stronger-than-expected U.S. economic data, which has diminished the probability of a 50-basis point interest rate cut by the Federal Reserve.
Butterfill noted, 
<blockquote>
 “We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot.”
</blockquote>
The report highlighted that the U.S. experienced the largest outflows, with $318 million withdrawn. Germany and Sweden also saw outflows of $7.3 million and $4.3 million, respectively. In contrast, Switzerland and Canada recorded modest inflows of $5.5 million and $13 million.
Bitcoin was the hardest hit, with nearly $320 million in outflows. Despite this, short Bitcoin investment products saw their highest inflows since March, receiving $4.4 million for the second week in a row. Ethereum experienced $5.7 million in outflows, with trading volumes remaining at just 15% of those during the U.S. ETF launch week. Conversely, Solana saw $7.6 million in inflows, bucking the trend. Additionally, blockchain equities gained positive momentum, attracting $11 million, particularly into investment products focused on Bitcoin miners.
Notably, over the past five weeks, there has been a general decline in the inflow of funds into crypto investment products.<a style="color: #0000ff;" href="https://defi-planet.com/2024/08/crypto-investment-products-record-biggest-inflows-in-5-weeks-following-powells-comments-new-coinshares-report/" rel="noopener noreferrer nofollow"> According to CoinShares</a>, two weeks ago, these products received a total of $530 million in inflows, with the U.S. leading in this regard with $498 million. Specifically, Bitcoin attracted the largest inflow at $543 million, while Ethereum experienced outflows of $36 million. Additionally, Ethereum ETFs saw a total of $3.1 billion in inflows over the past month.
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The post <a href="https://defi-planet.com/2024/09/coinshares-reports-broad-downturn-in-global-crypto-sentiment/" rel="noopener noreferrer nofollow">CoinShares Reports Broad Downturn in Global Crypto Sentiment</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

CoinShares Reports Broad Downturn in Global Crypto Sentiment

DeFi Planet

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