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Digital asset investment products recorded their most significant withdrawal in months last week, with outflows totaling $1.43 billion, CoinShares‘ latest weekly report revealed.
CoinShares reported that the sell-off marked the third-largest outflow of the year and the biggest since March. According to the firm, trading activity also intensified last week, with exchange-traded products (ETPs) generating $38 billion in volume, nearly 50% above the yearly average.
James Butterfill, head of research at CoinShares, explained that withdrawals early in the week reflected deep concern over the Fed’s tightening path. “Outflows of $2 billion occurred in the first few days,” he noted, linking the movement to fears of further rate hikes.
However, market positioning shifted later in the week after Jerome Powell’s remarks at the Jackson Hole Symposium were interpreted as softer than expected, triggering a partial rebound. Inflows of $594 million on Thursday and Friday cut the week’s losses.
Bitcoin and Ethereum dominate withdrawals
Bitcoin bore the brunt of the selling, with $1 billion leaving related products. Ethereum followed with $440 million in outflows, though midweek gains softened the decline.
Despite the setback, month-to-date figures highlight Ethereum’s stronger positioning. The asset has attracted $2.5 billion in inflows in August, compared to Bitcoin’s $1 billion in net outflows.
Year-to-date, Ethereum inflows account for 26% of total assets under management, while Bitcoin lags at 11%.
Beyond the two majors, investor appetite is split across other major altcoins.
XRP attracted $25 million in new capital as the US Securities and Exchange Commission (SEC) officially closed its case against Ripple, while Solana and Cronos added $12 million and $4.4 million in fresh capital.
In contrast, Sui and Ton lost $12.9 million and $1.5 million, respectively, highlighting fragmented investor sentiment.
Meanwhile, geographic flows also revealed diverging investor behavior last week.
US-based funds like BlackRock’s iShares drove the bulk of outflows at $1.3 billion, while Sweden and Switzerland contributed $135.5 million and $11.8 million.
In comparison, Germany, Canada, and Hong Kong registered modest inflows of $18.4 million, $3.7 million, and $3.5 million, respectively, offering a partial offset.
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