CMC News

#Crypto Investment Products See $812M in Weekly #Outflows

Global #crypto investment products experienced $812 million in net outflows last week, ending a two-week streak of inflows, according to CoinShares data released Monday. The asset manager's Head of Research, James Butterfill, attributed the reversal to stronger-than-anticipated macroeconomic data affecting U.S. investor sentiment.

Expectations for two additional U.S. rate cuts this year diminished following revised GDP and durable goods figures. Total assets under management declined to $221 billion from the previous week's record $241 billion, marking a significant shift in institutional positioning.

U.S.-based digital asset investment products led outflows with $1.04 billion in #redemptions. Switzerland, Canada, and Germany bucked the trend with net inflows of $126.8 million, $58.6 million, and $35.5 million, respectively, suggesting negative sentiment remained isolated to American markets.

$BTC-based funds dominated the exodus, shedding $719 million during the period. Butterfill noted that short-Bitcoin investment product demand showed no corresponding increase, indicating the negative sentiment likely represents low-conviction positioning that may prove temporary.

U.S. spot $BTC exchange-traded funds alone recorded $897.6 million in outflows, with Fidelity's FBTC product leading losses at $737.8 million. Regional inflows from other markets partially offset the domestic withdrawal, demonstrating geographic divergence in institutional crypto appetite.