Crypto Commodities Hemorrhage $305M As Economic Data Stirs Negative Sentiment

• Digital asset products posted net outflows of $305 million after a previous week of strong inflows.
• Bitcoin saw the biggest outflows, dropping $318 million, as expectations of the Fed cutting interest rates by September faded.
• Ethereum products also saw outflows of $5.7 million, while Solana saw inflows of $7.6 million.

Crypto investment products witnessed a pullback last week, posting net outflows of $305 million at the end of August. According to CoinShares’ weekly report on Monday, most of the outflows came from Bitcoin ETF investors, showing the asset’s sensitivity to interest rate cuts.

Crypto products end last week of August with outflows of $305 million

The crypto investment landscape shifted to net outflows last week, reaching $305 million after a previous week of inflows, according to CoinShares’ weekly report. CoinShares stated that the exits are largely the result of a general negative sentiment among crypto investment providers and regions.

Weekly flows of crypto assets

Geographically, the US had the largest share of outflows, totaling $318 million. The large outflows could be the result of “stronger-than-expected” macroeconomic data that reduced the possibility that the Federal Reserve (Fed) will cut interest rates by 50 basis points in September.

Germany and Sweden also saw outflows of $7.3 million and $4.3 million, respectively. However, Canada and Switzerland saw positive flows despite the overall negativity, recording inflows of $13.2 million and $5.5 million, respectively. Hong Kong, Australia and Brazil also saw light flows last week.

Bitcoin ETFs were the hardest hit among the asset classes, posting outflows of $319 million. Sudden exits can result from Bitcoin’s sensitivity to interest rate cuts. It also aligns with the recent decline in the price of BTC, which fell below $59,000 on Friday.

The price drop attracted whales who pulled out of the trade in recent days. Lookonchain data revealed earlier Monday that a large whale wallet withdrew 1,100 BTC worth $64.26 million from Binance.

Amid Bitcoin ETF outflows, short Bitcoin ETF investment products posted inflows for the second week in a row, totaling $4.4 million. Inflows were the product’s highest since March, indicating that bear investors are becoming active.

Meanwhile, Ethereum ETFs saw $5.7 million in outflows last week, extending their record outflows to a third straight week. On the other hand, Solana investment products saw inflows of $7.6 million.