Digital asset investment products faced their largest weekly outflows since March as $1.43 billion exited the market. Despite this, trading volumes in exchange-traded products (ETPs) surged to $38 billion, around 50% above the yearly average, which reflected “increasingly polarised” investor sentiment over US monetary policy.
Early in the week, fears of a hawkish Federal Reserve outlook triggered $2 billion in outflows. Despite this, sentiment rebounded after Jerome Powell’s Jackson Hole speech, which investors viewed as more dovish than anticipated. This eventually led to $594 million in inflows.
Ethereum Outperforms Bitcoin
In the latest edition of “Digital Asset Fund Flows Weekly Report,” CoinShares revealed that investor behavior showed a clearer tilt toward Ethereum compared to Bitcoin during the recent market turbulence. Ethereum staged a strong recovery mid-week and restricted outflows to $440 million, far below Bitcoin’s $1 billion decline.
On a month-to-date basis, Ethereum recorded inflows of $2.5 billion, while Bitcoin remains in negative territory with $1 billion in net outflows. Year-to-date, Ethereum inflows represent 26% of total assets under management, compared with Bitcoin’s 11%.
Investor activity favored several altcoins this past week, with XRP leading at $25 million in inflows. Solana and Cronos also gained $12 million and $4.4 million in inflows, respectively. Next up was Cardano with $2.9 million, followed by Chainlink with $2.1 million. Litecoin also attracted a minor inflow of $0.3 million over the past week.
Sui and Ton, on the other hand, suffered the most with outflows of $12.9 million and $1.5 million, respectively. Multi-asset products also witnessed $0.6 million in outflows.
Regional Divergence
Regionally, the United States experienced the largest outflows, with $1.31 billion over the past week, while Sweden and Switzerland recorded $135 billion and $11.8 billion in withdrawals, respectively. Several other countries, however, saw modest inflows.
Germany, for one, led with $18.4 million in inflows, followed by Canada with $3.7 million and Australia with $3.5 million. Hong Kong contributed $2.6 million, while Brazil also attracted $1 million in inflows during the same period.
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