Crypto investment products see weak inflows amid mixed asset investor behavior

• Digital asset products posted net inflows of $30 million last week on fears that the Fed will not cut interest rates in September.
• Bitcoin ETFs saw net inflows of $42 million as investors sought to shore up their holdings last week.
• Ethereum ETFs also saw $4.2 million in inflows, while Solana ETFs saw $39 million in outflows.

Digital asset products posted net inflows of $30 million last week after July US Consumer Price Index (CPI) data saw Bitcoin ETFs rally. Meanwhile, Solana investment products were hit by $38 million in outflows as the meme coin market tanked.

Digital asset products are seeing flows as the crypto market tries to recover

The crypto investment landscape saw choppy price action last week, posting $30 million in net inflows as the market looked to recover from the August 5 pullback, according to the CoinShares Weekly Digital Assets Report.

The report suggests that the weak flows may be due to concerns that the Federal Reserve (Fed) may not cut interest rates until September. This is also evident in a nearly 50% drop in trading activity among crypto ETFs.

The US dominated geographically with net receipts of $62 million, followed by Canada and Brazil, which recorded net receipts of $9.2 million and $7.2 million, respectively. Switzerland saw outflows for the first time in over a month as investors in the region moved $29.7 million out of crypto products last week. Hong Kong and Germany also saw outflows of $14.3 million and $6.1 million, respectively.

Bitcoin ETFs saw the biggest inflows among crypto ETFs last week, posting a net inflow of $42 million.

The renewed interest among investors could be due to hoarding behavior among major Bitcoin miners, especially after the US released in-line CPI data for July, according to CryptoQuant data. Miners could include Marathon Digital, which launched a $250 million senior convertible note offering as part of its plans to acquire more Bitcoin.

Crypto ETF Flows by Asset

On the other hand, Ethereum-based investment products saw net inflows of $4.2 million. In the US ETH ETF space, new providers saw inflows of $104 million, while Grayscale saw outflows of $118 million.

Meanwhile, Solana ETFs saw outflows last week totaling $38.9 million, the largest weekly outflow on record. This may be due to a decrease in meme coin market cap and trading volume, which has contributed to the increase in demand for Solana over the past five months.