- Digital asset funds saw a net outflow of $223 million in one week, snapping a 15-week streak of inflows.
- Bitcoin recorded $404 million in outflows, while Ethereum saw $133 million in inflows in the week ending August 1.
- Hawkish signals from the Federal Reserve and strong U.S. economic data triggered risk-off behavior CoinShare noted.
In the latest CoinShares Volume 245 report, digital asset investment products suffered their first net outflows in 15 weeks, totaling $223 million. The last week of July began with robust inflows of roughly $883 million, but was erased by sizable profit-taking on July 30, as the Federal Reserve continued its hawkish stance by maintaining status quo on interest rates. This dampened sentiment and sparked a risk-off move.
15-week inflow streak for BTC paused
Bitcoin led the retreat, shedding $404 million in investor flows. Despite the pullback, year-to-date Bitcoin inflows remain healthy at about US $20 billion, the report showed. Ethereum bucked the trend, registering its 15th consecutive week of net inflows, with approximately $133 million fresh capital flowing in. Meanwhile, altcoins such as XRP gained $31.2 million, Solana added $8.8 million, and SEI $5.8 million, respectively. Aave and Sui also attracted modest inflows, highlighting continued investor confidence in select crypto assets.
Fed commentary shakes sentiment
CoinShares analysts attributed the turnaround to hawkish FOMC commentary, a flurry of stronger-than-expected U.S. data, and a dovish twist in weaker-than-expected payrolls later in the week. Nonetheless, the mood remained cautious. Some investors appeared to lock in gains after a strong $12.2 billion inflow in the month of June, which comprised nearly half of all inflows for the year.
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The week’s net outflows are a clear indicator of how macroeconomic cues can swiftly influence crypto fund flows. Bitcoin’s outsized sensitivity to rate expectations is clear, while Ethereum and certain altcoins retained investor favor, they may not always be backed by fundamentals. As markets brace for more central bank commentary and economic data, the coming weeks may test whether inflows can resume their upward trajectory.
