Significant Outflows in Digital Asset Investment Products Amid Market Decline

Significant Outflows in Digital Asset Investment Products

Last week marked a notable decline in digital asset investment products, which experienced their largest net outflows since March, totaling a staggering $725.7 million. The majority of these withdrawals were concentrated in bitcoin (BTC) products, as investors pulled back from U.S. spot exchange-traded funds (ETFs) for bitcoin, resulting in a record loss for eight consecutive days.

According to data from CoinShares, bitcoin products alone accounted for $643 million in outflows, while ether (ETH) products saw a decrease of $98 million. The vast majority of these outflows were concentrated in the U.S. market, with approximately $721 million exiting during this period.

During the same week, bitcoin’s price declined by more than 8%, closing at $54,000 on Friday, down from around $59,000 on September 2. This decline occurred amidst a backdrop of disappointing economic data from the U.S., including the much-anticipated nonfarm payrolls report, which fell short of expectations. Although these figures heightened speculation about a possible 50 basis-point rate cut by the Federal Reserve this month, they failed to ignite enthusiasm among bitcoin proponents.

Furthermore, U.S. spot bitcoin ETFs experienced daily net outflows, marking an unprecedented eight-day losing streak—the first occurrence of its kind since these funds began trading in January, as reported by Bloomberg.

Looking ahead, traders are preparing for the upcoming U.S. release of August’s Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. Additionally, on Tuesday, the political landscape will heat up as Donald Trump faces off against Kamala Harris in the first debate between the presidential candidates ahead of the November election.