Digital asset investment products recorded a net outflow of $59 million in the first week of September, according to the latest report from digital asset manager CoinShares. This brings the total outflows over the past four weeks to $294 million, or 0.9% of total assets under management (AUM).
Bitcoin Outflows Dominate, Short Positions Surge
Bitcoin (BTC) saw the largest net outflow among all digital assets, totaling $69 million. Conversely, short Bitcoin investment products attracted $15 million in net inflows, the highest level since March 2023. CoinShares analysts attribute this divergence to persistent bearish sentiment among investors, fueled by regulatory uncertainties and a strengthening U.S. dollar.
Ethereum Bleeds, XRP Sees Modest Gains
Ethereum (ETH) recorded net outflows of $4.8 million during the same period, pushing its year-to-date outflows to $108 million, representing 1.6% of its total AUM of $6.9 billion. Among all tracked assets, only XRP and a few other unidentified digital assets posted positive inflows, with $0.7 million and $0.4 million respectively.
Market Sentiment Remains Fragile
The persistent outflows reflect a cautious macro environment. The Federal Reserve's hawkish stance has strengthened the dollar, while tighter crypto regulations have dampened risk appetite. Although XRP and some others saw small inflows, the overall capital flow underscores a risk-off mood. The rise in short Bitcoin inflows suggests some investors are hedging against further downside.