Ethereum-based investment products recorded their first weekly outflows in five weeks, with $169 million, following steady withdrawals seen each day. Despite this, demand for 2x leveraged Ethereum ETPs stayed strong, which indicated continued trader interest in high-risk exposure.
This comes as overall digital asset investment products attracted $921 million in inflows after several “choppy” weeks. The partial US government shutdown has clouded the macroeconomic outlook, limiting access to crucial policy data and creating uncertainty about the Federal Reserve’s next moves.
However, Friday’s softer-than-expected CPI report revived optimism that more rate cuts may still come this year. Meanwhile, global ETP trading activity remained high, with $39 billion in volume for the week. This figure is far above the year-to-date average of $28 billion.
In its latest edition of ‘Digital Asset Fund Flows Weekly Report,’ CoinShares reported Bitcoin investment products drew in $931 million in inflows this week and lifted total inflows since the US Federal Reserve’s rate cuts began to $9.4 billion. Year-to-date (YTD) inflows now stand at $30.2 billion, still trailing the $41.6 billion recorded in 2024. Short Bitcoin products also saw positive sentiment as this cohort attracted $14.4 million in new capital.
Enthusiasm for Solana and XRP has tapered off ahead of their anticipated US ETF launches, with inflows of $29.4 million and $84.3 million, respectively. Multi-asset funds followed with $33.2 million in inflows, while Litecoin and Chainlink logged smaller gains of $0.3 million and $0.1 million during the same period.
Among assets facing outflows, Sui followed Ethereum’s suit and registered $8.5 million, and Cardano saw $0.3 million in outflows.
Regional inflows were led by the US with $843 million, while Germany delivered one of its biggest weeks to date with $502 million. Brazil and Australia recorded smaller gains of $13.2 million and $0.9 million, respectively. On the other hand, Switzerland saw outflows of $359 million, though these were largely technical and were tied to asset transfers between providers.
Sweden mirrored this trend with $49 million in outflows, and both Hong Kong and Canada registered modest declines of $11.2 million and $10 million each.
According to QCP Capital, crypto markets are entering a critical crossroads this week as global and domestic catalysts converge. All eyes are on the upcoming Trump-Xi meeting as any progress on a US-China trade deal is expected to boost investor confidence and risk appetite, and lift Bitcoin and other assets out of their October stagnation.
However, much hinges on the Federal Reserve’s decision regarding its quantitative tightening program. Additionally, the drawn-out US government shutdown and weak equity sentiment threaten to dampen momentum. With BTC trading flat and risk reversals turning neutral, markets appear to be cautiously positioned. Until Bitcoin reclaims the $116,000 level, the digital asset trading platform expects range-bound trading as crypto awaits its next macro-driven breakout.
