Crypto investment products experienced significant withdrawals last week, totaling $305 million, as negative sentiment spread across various providers and regions, according to CoinShares ‘ latest weekly report .

James Butterfill, CoinShares’ head of research, attributed these outflows to stronger-than-expected US economic figures. He indicated that this data “reduced the probability of a 50-basis point interest rate reduction.”

He further added:

“We anticipate the asset class becoming increasingly sensitive to interest rate expectations as the FED draws closer to a shift in policy.”

Bitcoin, US bore the brunt of outflows

Bitcoin experienced most of these outflows, with asset managers like Grayscale, ProShares, and 21Shares all reporting net losses last week. The top crypto saw $319 million in outflows, while the United States saw a slightly lesser total outflow of $318 million.

In contrast, short Bitcoin investment products saw their largest inflows since March, attracting $4.4 million for the second consecutive week.

Ethereum also faced outflows, losing $5.7 million, while trading volumes remained stagnant at just 15% of those seen during the US ETF launch week.

Galaxy Digital previously highlighted that Ethereum ETFs were trading significantly lower volumes than Bitcoin ETFs, falling well below ETH/BTC centralized exchange volume and market cap ratios. This disparity is partly due to prime trading desks not yet offering leverage on Ethereum ETFs.

They noted :

“The percentage of Ethereum ETF trading volume compared to Bitcoin ETF volume has steadily decreased in the first 25 days.”

Solana and Blockchain Equities buck the trend

Despite a generally negative market, Solana attracted $7.6 million in investments, bucking the broader trend. Blockchain-related stocks also saw positive growth, with $11 million flowing into products focused on Bitcoin mining operations.

This investment surge in miners comes as they discover new methods to utilize their Bitcoin mining equipment by supplying computational power to artificial intelligence (AI) firms.

VanEck predicts that if Bitcoin miners allocate 20% of their energy resources to AI computation by 2027, they could increase their average annual profits to nearly $14 billion.