2 min readUS Outflows of $725.7m in Rate Cut Uncertainty, While Europe Shows Resilience
Digital asset investment products experienced significant outflows totalling US$725,7m, matching the largest recorded outflow set in March this year.
Bitcoin saw outflows totalling US$643m, with short-bitcoin seeing minor inflows of US$3.9m.
Ethereum saw outflows totalling US$98m. Conversely, Solana saw the largest inflows of any asset totalling US$6.2m.
Digital asset investment products experienced significant outflows totalling US$725,7m, matching the largest recorded outflow set in March this year. We believe this negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point (bp) interest rate cut by the US Federal Reserve. However, daily outflows slowed later in the week as employment data fell short of expectations, leaving market opinions on a potential 50bp rate cut highly divided. The markets are now awaiting Tuesday's Consumer Price Index (CP|) inflation report, with a 50bp cut more likely if inflation comes in below expectations.
Regionally, the outflows were almost entirely focussed on the US, which saw outflows of US$721m, although Canada also saw outflows of US$28m. Conversely, sentiment in Europe was more positive, with Germany and Switzerland seeing US$16.3m and US$3.2m respectively.
Bitcoin saw outflows totalling US$643m, with short-bitcoin seeing minor inflows of US$3.9m.
Ethereum saw outflows totalling US$98m, which was almost solely from the incumbent Grayscale Trust, while inflows from the newly issued ETFs have almost completely dried up. Conversely, Solana saw the largest inflows of any asset totalling US$6.2m.
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