Simply put
- Last week, U.S. Bitcoin ETFs saw outflows of $946 million, with the iShares Bitcoin Trust losing $400 million.
- The newly launched Solana ETF gained $421 million in investments from a U.S.-based fund.
- Total withdrawals from digital asset funds reached $360 million, as investors reacted to cautious comments from U.S. central bank Chairman Jerome Powell regarding potential interest rate cuts in December.
U.S. Bitcoin exchange-traded funds faced significant withdrawals last week, totaling $946 million, as reported by the digital asset management firm CoinShares.
The iShares Bitcoin Trust (IBIT) experienced a loss of about $400 million, the largest decline among 11 spot BTC funds currently on the market. However, the overall net outflow for all digital asset funds was somewhat less severe, at $360 million.
“Despite recent U.S. interest rate cuts, digital asset investment products saw total outflows of $360 million, influenced by Federal Reserve Chairman Jerome Powell’s remarks suggesting that further interest rate cuts in December are not a ‘foreseeable conclusion,’” noted James Butterfill, research director at CoinShares. “This hawkish sentiment, combined with the absence of vital U.S. economic data, seems to be leaving investors uncertain.”
Meanwhile, some regional ETFs balanced out the BTC fund’s losses. German and Swiss issuers reported net inflows exceeding $30 million last week, while Canadian and Australian issuers attracted $8.5 million and $7.2 million, respectively.
The overall cryptocurrency fund category experienced a surge in inflows into Solana-related exchange-traded products, with investors contributing $421 million last week following excitement surrounding a new U.S.-based fund that started trading in late October.
Among the launches was the Bitwise Solana ETF on the Nasdaq, which has already amassed $105 million in assets under management within a week. Another competitor in this space, the Rex Osprey Solana Staking ETF, reached $100 million in assets in just 12 business days.
The lack of economic data stems from the ongoing U.S. government shutdown, which has lasted more than 33 days. If it continues until Wednesday, it will mark the longest shutdown in U.S. history. Prediction Markets associated with Myriad suggest that there’s a 97% likelihood that lawmakers won’t resolve the shutdown in the next couple of days.
On Monday morning, cryptocurrency markets dropped significantly, leading to the liquidation of over $1 billion worth of crypto contracts. Bitcoin and Ethereum were nearly equal in contract values, amounting to approximately $312 million and $303 million, respectively.
As of now, Bitcoin is trading at $107,463, having decreased by 2.5% over the past day. Ethereum is trading at $3,657.77, down about 5.1% since Sunday, according to CoinGecko.
