Investment products in digital assets encountered significant difficulties last week. The sector experienced outflows amounting to $352 million, even with expectations of a market uplift due to weak payroll data and possible interest rate reductions in the U.S. Trading volumes also experienced a 27% decline, indicating a temporary cooling in investor appetite. However, year-to-date inflows remain strong at $35.2 billion, surpassing last year’s numbers by 4.2% on an annualized basis.
Investor sentiment showed differences across regions, as the United States faced outflows amounting to $440 million. On the other hand, Germany and Hong Kong saw inflows of $85.1 million and $8.1 million, respectively, reflecting a varied global perspective on digital asset investments. Despite overall market reluctance, Bitcoin managed to maintain its position as a preferred digital asset with net inflows of $524 million. In contrast, Ethereum was the primary driver behind the week’s outflows, with $912 million withdrawn. Ethereum experienced a steady decline, marked by daily outflows over the past week from multiple exchange-traded product issuers.
Even with the current decline, Ethereum has still seen impressive year-to-date inflows totaling $11.2 billion. Both XRP and Solana (SOL) have maintained their appeal to investors; Solana has had inflows of $1.16 billion so far this year, marking the 21st consecutive week of inflows. With $1.22 billion in inflows within the same time period, XRP also showed significant success, demonstrating its tenacity in a volatile market.