Between August 29 and September 6, $352 million was withdrawn from digital asset investment products, despite weak U.S. employment data and improving prospects for a Federal Reserve interest rate cut. This was reported by CoinShares.
Trading volume fell by 27% over the week. Combined with the outflow of funds, this “indicates a cooling appetite for cryptocurrencies.”
The cumulative inflow since the beginning of the year remains at $35.2 billion, 4% higher than the figure for the entire year of 2024. Analysts noted that overall investor sentiment remains stable.
The largest outflow was recorded in Ethereum-based structures — $912 million. Some attributed this to profit-taking.
“The negative trend in exchange-traded funds based on the second-largest cryptocurrency by market cap should not be seen as a vote of no confidence — it’s a normal portfolio rebalancing. After strong inflows in August, many institutional players likely took profits,” said VALR co-founder and CEO Farzam Ehsani in a comment to Decrypt.
Konstantin Anisimov, CEO of Currency.com, linked the current trend to macroeconomic uncertainty amid weak U.S. employment data and recession fears. As a result, major players are shifting capital into Bitcoin ETFs, considering digital gold a safer asset during turbulent times, he noted.
Investment products based on the first cryptocurrency attracted $524 million, although they had previously lagged behind Ethereum in terms of inflows for several weeks.
Structures focused on XRP and Solana showed positive inflows for 21 consecutive weeks. During this time, $1.22 billion and $1.16 billion were invested in them, respectively.
Regionally, Germany led with $85.1 million, while the U.S. recorded an outflow of $440 million.
From August 22 to 30, inflows into digital asset investment products reached $2.48 billion.
CoinShares to List on Nasdaq
On September 8, it was announced that CoinShares will list on the U.S. Nasdaq exchange through a merger with Vine Hill Capital Investment Corp. Under the agreement, the European digital asset manager’s valuation reached $1.2 billion.
“Listing in the U.S. will strengthen our reputation, expand our reach, and allow us to leverage opportunities in the world’s largest market, which holds more than half of the global assets under management,” said CoinShares CEO and co-founder Jean-Marie Mognetti.
After the deal closes, the company will be named Odysseus Holdings Limited (Holdco). The decision has already been supported by 85% of the company’s shareholders. The process is expected to be completed by the end of the year.
Back in July, the company behind USDT, Tether, announced that it is actively working on entering the U.S. market.