Digital assets suffer as Bitcoin leads $726 million outflow Digital assets suffer as Bitcoin leads $726 million outflow
The CoinShares report showed that Ethereum and Bitcoin faced heavy outflows, while Solana saw unexpected gains.
2 min read
Updated: Sep. 9, 2024 at 3:31 pm UTC
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Digital asset investment products saw significant outflows totaling $726 million, matching the highest outflow recorded earlier this year in March, according to CoinShares‘ latest report.
James Butterfill, head of research at CoinShares, attributed this negative sentiment to stronger-than-expected macroeconomic data from the previous week. This increased the likelihood of a 25-basis point interest rate hike by the US Federal Reserve.
He added:
“Daily outflows slowed later in the week as employment data fell short of expectations, leaving market opinions on a potential 50bp rate cut highly divided. The markets are now awaiting Tuesdayโs Consumer Price Index (CP|) inflation report, with a 50bp cut more likely if inflation comes in below expectations.”
US, Bitcoin lead outflows
Bitcoin led the outflows, losing $643 million, bringing its monthly outflows to $645 million. Short BTC funds, however, saw minor inflows of $3.9 million.
Meanwhile, US Bitcoin exchange-traded funds (ETFs) saw an eight-day outflow streak, causing net outflows of $721 million in the country. Fidelity’s FBTC fund was responsible for most of this, with $405 million in outflows last week.
It was followed by Grayscale’s GBTC, which saw $280 million in outflows. Bitwise ETFs completed the top three for last week with losses of around $60 million.
Canada also recorded outflows of $28 million. In contrast, Europe had more positive sentiment, with Germany and Switzerland seeing inflows of $16.3 million and $3.2 million, respectively.
Altcoins suffer contrasting fates.
Ethereum-based investment products recorded $98 million in net outflows last week.
This was primarily due to Grayscale’s converted ETHE fund, which lost $111 million during the period. This meant the minimal inflows into other spot Ethereum ETF products could not offset the significant outflows, further fuelling suggestions that there was no demand for these investment products.
However, Solana-based investment products secured $6.2 million in net inflows, the largest among digital asset products.
Other digital assets like Cardano saw outflows of around $800,000 despite completing the first phase of its highly anticipated Chang Hard Fork. In comparison,ย Litecoin and XRP products saw cumulative inflows of $1.7 million.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
XRP 
Litecoin 
CoinShares 
Grayscale Investments 
Fidelity Investments 
Bitwise 
Bitwise Bitcoin ETF 
Grayscale Bitcoin Trust Grayscale Ethereum Trust 
Fidelity Wise Origin Bitcoin Trust Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,369.06
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$247.062
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
XRP
$1.13461
Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Litecoin
$90.3249
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
The Bitwise Bitcoin ETF (BITB) is a newly launched exchange-traded fund that provides investors with exposure to Bitcoin.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.