Digital asset investment products experienced significant withdrawals totaling $726 million, mirroring the highest outflow recorded earlier this year in March, according to CoinShares ‘ latest report .

James Butterfill, head of research at CoinShares, attributed this negative trend to stronger-than-expected economic data from the previous week. This increased the likelihood of a 25-basis point interest rate increase by the US Federal Reserve.

He added:

“Daily outflows slowed later in the week as employment figures fell below expectations, creating conflicting viewpoints regarding a potential 50bp interest rate reduction. The markets are now looking ahead to Tuesday’s Consumer Price Index (CP|) inflation report, with a 50bp cut more probable if inflation comes in lower than anticipated.”

US, Bitcoin lead outflows

Bitcoin led the outflows, losing $643 million, bringing its monthly outflows to $645 million. However, Short BTC funds experienced minor inflows of $3.9 million.

Meanwhile, US Bitcoin exchange-traded funds (ETFs) witnessed an eight-day outflow streak, resulting in a net outflow of $721 million in the country. Fidelity’s FBTC fund was primarily responsible for this outflow, recording $405 million in outflows last week.

It was followed by Grayscale’s GBTC, which saw $280 million in outflows. Bitwise ETFs were among the top three for last week with losses of around $60 million.

Canada also experienced outflows of $28 million. On the other hand, Europe had more positive sentiment, with Germany and Switzerland seeing inflows of $16.3 million and $3.2 million, respectively.

Altcoins suffer contrasting fates.

Ethereum -based investment products recorded $98 million in net outflows last week.

This was primarily driven by Grayscale’s converted ETHE fund , which experienced a significant outflow of $111 million during the period. Consequently, minimal inflows into other spot Ethereum ETF products couldn't offset this substantial outflow, further strengthening the suggestion that there was limited demand for these investment products.

However, Solana-based investment products saw the largest net inflows among digital asset products, recording $6.2 million.

While digital assets like Cardano experienced outflows of roughly $800,000, despite the successful completion of the first phase of its highly anticipated Chang Hard Fork , Litecoin and XRP products recorded combined inflows of $1.7 million.