Recent data released by CoinShares revealed that investment products in digital assets recorded the largest outflow of funds in the past week since March, totaling $1.43 billion.


According to the report, weekly trading volume in exchange-traded products (ETPs) rose to about $38 billion, surpassing the average for the current year by about 50%, indicating an increasing divergence in investor sentiment alongside heightened market activity.


The report attributed this wave to growing expectations for the Federal Reserve to continue a tighter monetary policy, which led to capital outflows exceeding $2 billion at the beginning of the week. However, the more dovish tone in Federal Reserve Chair Jerome Powell's speech during the Jackson Hole conference helped mitigate losses, as the market saw a return of about $594 million, which helped to somewhat ease concerns.


At the level of major assets, Bitcoin suffered the largest outflow at $1.03 billion, while Ethereum recorded negative outflows of about $440 million, although it showed relatively better resilience. Notably, Ethereum has achieved a net positive flow exceeding $2.52 billion since the beginning of the month, compared to a net outflow of nearly $1.05 billion from Bitcoin, reflecting a gradual shift in institutional investment preferences.


In terms of percentages, the inflows to Ethereum since the beginning of the year have represented 26% of its total assets under management (AUM), compared to only 11% for Bitcoin.


On the other hand, regarding alternative currencies, some assets continued to attract liquidity; XRP recorded positive inflows of $25 million, Solana $12 million, and Cronos about $4.4 million. In contrast, Sui and Ton faced outflows of about $12.9 million and $1.5 million, respectively.


Geographically, the United States led with a massive outflow of $1.31 billion in a single week, followed by Sweden with about $136 million and Switzerland with $11.8 million. Meanwhile, other markets saw opposing trends, with Germany recording positive inflows of $18.4 million, Canada $3.7 million, Australia $3.5 million, Hong Kong $2.6 million, and Brazil $1 million.


The report indicates that the upcoming September Federal Reserve meeting and the potential for interest rate cuts will remain a key factor in determining the liquidity trajectory within the digital asset market over the coming weeks.