Digital asset investment products recorded $223 million in outflows last week, snapping a 15-week streak of inflows.
Key Takeaways:
- Digital asset products saw $223M in outflows, ending a 15-week inflow streak.
- Rate hike fears and macro volatility triggered over $1B in investor withdrawals by Friday.
- Bitcoin led outflows, while Ethereum and XRP continued to attract capital.
The reversal comes amid renewed concerns over US monetary policy following a hawkish Federal Reserve meeting and stronger-than-expected economic data, according to a Monday report from CoinShares.
The week initially opened with $883 million in inflows, but investor sentiment quickly shifted.
$1B Flee as Rate Jitters Spark Risk-Off Exodus
By Friday, outflows exceeded $1 billion as risk-off momentum took hold, likely spurred by fears of prolonged higher interest rates. While weaker payroll data toward the end of the week offered some dovish signals, they weren’t enough to calm markets.
Bitcoin saw the sharpest pullback, with $404 million in outflows, highlighting its continued sensitivity to macroeconomic shifts.
Still, year-to-date inflows into Bitcoin products stand at $20 billion, reflecting sustained institutional interest despite the volatility.
Ethereum, in contrast, posted a solid week. It logged $133 million in inflows, its 15th consecutive positive week, underscoring investor confidence in its long-term fundamentals.
XRP followed with $31.2 million in inflows, while Solana and SEI attracted $8.8 million and $5.8 million, respectively.
Smaller gains were also seen in Aave and Sui, which brought in $1.2 million and $0.8 million.
With $12.2 billion in net inflows over the past 30 days, representing half of 2024’s total inflows so far, last week’s outflows may simply reflect a bout of profit-taking amid macro uncertainty.
As reported, spot Bitcoin ETFs recorded $812.25 million in net outflows on Friday, marking the second-largest single-day exodus in the history of these products.
The sudden reversal wiped out a week’s worth of inflows and cut cumulative net gains to $54.18 billion.
Total assets under management (AUM) across Bitcoin ETFs dropped to $146.48 billion, equivalent to 6.46% of the cryptocurrency’s total market capitalization.
Likewise, spot Ether ETFs broke their 20-day inflow streak, their longest to date, logging $152.26 million in net outflows on the same day.
The total AUM for Ether ETFs now stands at $20.11 billion, or 4.70% of Ethereum’s market capitalization.
95% Approval Chance for Spot Solana, XRP ETFS
As reported, Bloomberg’s senior ETF analysts have assigned a 95% chance that the SEC will approve spot ETFs for Solana, XRP, and Litecoin this year, raising their previous odds from 90% amid growing optimism for institutional crypto products.
They also expect a crypto index ETF tracking multiple assets could gain approval as early as this week, signaling broader access to altcoins for traditional investors.
Beyond ETFs, institutional Bitcoin demand is spreading into corporate treasuries.
Just today, Metaplanet added another 463 Bitcoin to its growing treasury, pushing the company’s total holdings to 17,595 BTC.
At current prices, Metaplanet’s total BTC stash is now worth more than ¥261.28 billion or about $1.78 billion. But the company values the holdings even higher based on market gains, bringing its estimated market value closer to $2.02 billion.
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