Bitcoin ETFs lose more than $600 million while Ethereum ETFs lose almost $100 million, according to CoinShares.
The ETF investment products in digital assets experienced significant outflows totaling US$726 million in the last week, matching the largest outflow recorded in March this year.
ETFs of bitcoin recorded outflows of $643 million, while their ethereum (ETH) equivalents lost $98 million, according to digital asset manager CoinShares. Surprisingly, virtually all other crypto investment products, except for those based on cardano (ADA)recorded positive net inflows, although too small to offset the negative impact of BTC and ETH.
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He Bitcoin fell more than 8% during the week and closed Friday at $54,000, Bitcoin ETFs have seen a sharp decline since trading at around $59,000 on Monday, weighed down by uncertainty in the United States. In fact, spot bitcoin exchange-traded funds (ETFs) experienced a sharp decline net outflows every day and increased their negative streak to eight consecutive days of losses. This is the first time this has happened since the funds began trading in January. BlackRock’s IBIT fund recently recorded its third day of net outflows, the second in just two weeks.
By region, The departures were almost entirely focused on the US, where outflows amounted to $721 million, although outflows of $28 million were also recorded in Canada. In contrast, sentiment in Europe was more positive, with net inflows of $16.3 million in Germany and $3.2 million in Switzerland.
How the Fed impacts cryptocurrencies
According to CoinShares, this negative sentiment was driven by the previous week’s stronger-than-expected macroeconomic data, which increased the probability of a rate cut by 25 points basis points (bp) by the US Federal Reserve (Fed).
“However, daily outflows slowed at the end of the week as employment data missed expectations, leaving market views sharply divided on a possible 50bp rate cut. Markets are now awaiting the report from the Fed. Consumer Price Index (CPI) inflation and a 50 basis point cut is more likely if inflation falls short of expectations,” explains James Butterfill, director of research at CoinShares.
Source: Ambito
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