Digital Asset Investment Products See $454M in Net Outflows as Rate Cut Hopes Fade
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Digital asset funds posted $454M in net outflows as US investors pulled back amid interest rate uncertainty. Digital asset investment products faced a sharp reversal in investor demand last week as concerns around US monetary policy weighed on risk appetite. Data shows that recent outflows have erased most of the strong inflows seen at the start of the year, even as interest in select altcoins and new ETF filings points to continued institutional engagement. Digital Asset Funds Post Fourth Straight Day of Outflows on Macro Concerns Digital asset investment products recorded $454 million in net outflows over the past week, marking the fourth straight day of withdrawals. Combined outflows for the four-day stretch totaled $1.3 billion, nearly offsetting the $1.5 billion in inflows logged during the first two trading days of the year. Investor caution increased after fresh macroeconomic data reduced expectations for a US Federal Reserve interest rate cut in March. Weekly flow data from CoinShares shows sentiment has weakened beyond a single week. Strong inflow conditions seen through much of mid-2025, when weekly inflows often ranged between $3 billion and $6 billion, have given way to a choppier pattern. Outflows over the past weeks point to a clear pullback in confidence as markets moved into early 2026. Image Source: CoinShares Regional data showed a sharp split in the behavior of investors pertaining to digital asset products. United States-based products were the only ones to record net outflows, totaling $569 million for the week. Other regions remained net buyers, led by Germany with $58.9 million in inflows, followed by Canada at $24.5 million and Switzerland at $21 million. Crypto ETF Market Shows Diverging Trends as Bitcoin Selling Meets Altcoin Demand Activity among major US digital asset product providers showed mixed results: Fidelity led weekly outflows with $454 million in…
Filed under: News - @ January 12, 2026 10:27 pm