Crypto investment products experienced a total net outflow of $812 million over the past week, primarily driven by Bitcoin products, which incurred $719 million in weekly outflows. Ethereum followed with its investment products, losing funds worth $409.4 million.
The report attributes the outflow in BTC and ETH investment products to the lower expectations of interest rate cuts this year, following the stronger-than-anticipated macroeconomic data in the US. Notably, the GDP and durable goods figures were revised to the upside, showing resilience in the economy.
That said, cumulative month-to-date (MTD) inflows remain strong, hovering around the $4 billion mark. Similarly, the cumulative year-to-date (YTD) inflows stand at $39.6 billion, inching closer to last year’s record $48.6 billion inflows.
Notably, BlackRock’s iShares spot Bitcoin exchange-traded fund (ETF) lost $68 million in funds. Meanwhile, Grayscale Investments’ GBTC ETF saw $300 million in outflows, while Fidelity’s FBTC witnessed outflows to the tune of $738 million. The report adds:
Importantly, there was no commensurate increase in short-bitcoin investment product demand, suggesting that the negative sentiment was likely low-conviction and likely to prove temporary.
In terms of countries, the US saw outflows to the tune of $1.03 billion, while Sweden-based crypto investment products lost $13.4 million in funds. On the contrary, Swiss products gained $126 million, while Canadian investment products attracted $58.6 million in inflows.
Unlike Bitcoin and Ethereum investment products, Solana investment products shone as they attracted inflows worth $291 million. Even more impressive, Solana products have pulled in $1.8 billion worth of funds on a YTD basis.
Besides the positive momentum in investment products, SOL is also seeing bullish price action as it steadily moves toward its all-time high (ATH) value of $293, recorded earlier this year in January.
