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Digital asset flows see US$454M outflows amid fed rate cut fading
US$454m weekly outflows; four-day US$1.3B streak nearly wiped out early-year US$1.5B inflows, mainly due to lower March Fed cut expectations.
US$569M outflows from the US, Germany (US$58.9M), Canada (US$24.5M), and Switzerland (US$21M) saw inflows.
Mixed signals amongst assets with Bitcoin and Ethereum seeing outflows, while Solana, XRP and Sui saw inflows.
Digital asset investment products saw US$454M in outflows last week. A four-day run of outflows last week totalling US$1.3B almost completely reversed the US$1.5B in inflows recorded in the first two days of this year. This turnaround in sentiment appears to stem mainly from investor worries over the diminishing prospects of a Federal Reserve interest rate cut in March following recent macro data releases.
Regionally, the United States was the only market to show negative sentiment, recording outflows of US$569m. In contrast, several other countries saw inflows: Germany led with US$58.9M,, followed by Canada at US$24.5M and Switzerland at US$21M.
Bitcoin bore the brunt of the negative sentiment, seeing US$405M outflows last week, although we also saw US$9.2M outflows from Short-Bitcoin products sending mixed signals as to the general market sentiment for the asset.
Ethereum saw outflows totalling US$116M last week, alongside US$21M in outflows from multi-asset products. Binance and Aave products recorded smaller outflows of US$3.7M and US$1.7M, respectively.
Positive sentiment persisted for XRP, Solana, and Sui, drawing inflows of US$45.8M, US$32.8M and US$7.6M, respectively.
