What happened? Digital asset investment products recorded $812 million in outflows last week as investor sentiment cooled.
Bitcoin and Ethereum suffered the biggest withdrawals while Solana and XRP attracted notable inflows, showing a mixed picture. Stronger U.S. economic data pushed back expectations for rate cuts, which weighed on short-term demand.
Who does this affect? Institutional investors, fund managers and traders are the main groups feeling the impact.
U.S.-based funds drove most of the outflows, while investors in Switzerland, Canada and Germany showed more appetite, so regional players are affected differently. Developers and holders of altcoins like Solana and XRP may benefit from renewed institutional interest tied to upcoming ETF hopes.
Why does this matter? It signals potential short-term volatility and a re-pricing of digital assets driven by macro and policy expectations.
Cooling expectations for Fed easing can reduce inflows and press prices, especially for Bitcoin and Ethereum, even as YTD inflows remain strong and suggest underlying demand. If ETF rollouts and regional demand persist, flows could stabilize or reverse, influencing prices and institutional adoption going forward.