According to Cointelegraph, cryptocurrency investment products experienced a setback last week as global exchange-traded products (ETPs) saw $812 million in outflows. This marked the end of a two-week streak of inflows, as reported by CoinShares on Monday. The total assets under management (AUM) fell to $221 billion from the previous week's record of $241 billion. This decline is attributed to waning confidence in potential U.S. interest rate cuts, as noted by CoinShares’ head of research, James Butterfill.
The outflows coincided with a 3.4% drop in Bitcoin's price, which fell from $112,000 last Monday to a low of $109,000 during the week, based on CoinGecko data. Both Bitcoin (BTC) and Ether (ETH) ETPs suffered significant losses, with outflows of $719 million and $409 million, respectively. However, Solana (SOL) funds stood out as a positive performer, attracting $291 million in inflows. This surge is likely driven by anticipation of upcoming exchange-traded fund (ETF) launches in the United States, according to Butterfill.
Despite the recent outflows, crypto ETPs have maintained substantial cumulative inflows, including $4 billion in month-to-date inflows and $39.6 million year-to-date. Butterfill expressed optimism that crypto funds are well-positioned to sustain their momentum, potentially matching last year’s record inflows of $48.6 billion.
