1. Outflows Amid Economic Data
2. Geographic Distribution of Outflows and Inflows
3. Reaction of Individual Assets

Last week, digital asset investment products experienced significant outflows due to unmet expectations of US interest rate cuts.

Outflows Amid Economic Data

According to CoinShares, digital asset investment products saw $305 million in outflows last week. CoinShares head of research James Butterfill noted that these outflows were driven by stronger-than-expected US economic data, which reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve.

Geographic Distribution of Outflows and Inflows

The US led the outflows with $318 million withdrawn. Germany and Sweden also saw outflows of $7.3 million and $4.3 million, respectively. In contrast, Switzerland and Canada recorded minor inflows of $5.5 million and $13 million respectively.

Reaction of Individual Assets

Bitcoin experienced the largest outflows, shedding nearly $320 million. However, short Bitcoin investment products saw their largest inflows since March, attracting $4.4 million for the second consecutive week. Ethereum also faced outflows of $5.7 million, with trading volumes stagnating at just 15% of the levels seen during the US ETF launch week. Solana defied the overall trend, attracting $7.6 million in inflows. Blockchain equities also experienced positive momentum, with $11 million flowing in, particularly into investment products focused on Bitcoin miners.

Massive outflows from digital asset products last week were driven by false expectations of US interest rate cuts. The outflows showed that the market is becoming increasingly sensitive to economic news and Federal Reserve policy.