Investment activity in cryptocurrency funds experienced a significant slowdown during the week ending Sept. 6, with total outflows amounting to $352 million despite positive US economic indicators, as reported by CoinShares’ latest report.
CoinShares’ head of research, James Butterfill, noted that weaker employment figures and expectations of a Federal Reserve rate cut in September should have spurred investment. However, these factors coincided with a 27% decrease in weekly trading volumes, indicating investor reluctance to allocate new funds to digital assets. Despite this decline, long-term market sentiment remains optimistic.
Year-to-date inflows, according to CoinShares, currently stand at $35.2 billion on an annualized basis, surpassing last year’s total of $48.5 billion by 4.2%.
Ethereum Outflows Lead the Way
While Bitcoin products attracted $524 million in investments last week, Ethereum faced significant challenges.
CoinShares reported that investors withdrew $912 million from ETH-linked products, continuing a trend of daily outflows across various issuers for seven consecutive days.
This decline reflects the waning sentiment towards Ethereum, despite substantial inflows totaling $11.2 billion for the year.
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In contrast, alternative cryptocurrencies like XRP and Solana continued to attract steady interest, indicating strong institutional demand for these assets.
During the reporting period, Solana saw $16.1 million in weekly inflows, marking its 21st consecutive positive week and bringing the total for the year to $1.16 billion. Conversely, XRP-focused funds received $14.7 million in new investments, pushing their 2025 inflows to $1.22 billion.
Analysts attribute this sustained activity to speculation surrounding the potential approval of spot ETFs linked to both assets, with Bloomberg analysts giving them a greater than 90% chance of approval.
US Investors Lead Market Redemption
Regionally, capital movements varied with US investors driving market redemptions.
CoinShares reported that the US led global outflows with $440 million, while Sweden and Switzerland saw redemptions of $13.5 million and $2.7 million, respectively.
On the other hand, Germany recorded the highest inflows with $85.1 million, followed by Hong Kong with $8.1 million. Investors in Canada, Brazil, and Australia also made modest contributions of $4.1 million, $3.5 million, and $2.1 million, respectively.
