Middle East conflicts combined with rising expectations of Federal Reserve interest rate hikes, digital asset funds experience their first weekly outflow in five weeks

According to CoinShares weekly report data, influenced by concerns over Iran conflicts and rising expectations of Fed rate hikes, global digital asset investment products recorded a first outflow in four weeks last week, with a total weekly outflow of $414 million.

Currently, the global assets under management (AuM) have fallen to $129 billion, returning to early February levels, comparable to the initial phase of Trump’s tariff policies in April 2025. Additionally, market expectations for the Federal Reserve’s June interest rate meeting have shifted from rate cuts to rate hikes.

In terms of regional distribution, negative sentiment mainly originates from the United States, with a net weekly outflow of $445 million; followed by Switzerland and Sweden, which recorded small weekly outflows of $4 million and $3.5 million respectively.

In contrast, German, Canadian, and Brazilian investors view recent price weakness as an opportunity, with weekly net inflows of $21.2 million, $15.9 million, and $2.6 million respectively last week.

Notably, Ethereum has become the hardest hit in this round of outflows, with a weekly outflow of $222 million. Analysts believe this may be related to market rumors about the potential delay of the Clarity Act.

From a market performance perspective, Ethereum has experienced a net outflow of $273 million since the beginning of the year, making it the weakest among all digital assets. Although Bitcoin also saw outflows of $194M last week, it still maintains a net inflow of $964M since the start of the year.

Moreover, short Bitcoin products recorded a weekly inflow of $4 million, indicating that investors are cautious about Bitcoin’s short-term trend, continuing to use short positions on these products to hedge risks or seek profits.

Meanwhile, Solana also faced pressure, with a weekly net outflow of $12.3 million; XRP, on the other hand, was the asset with the highest inflow, with a total of $15.8 million last week.

In summary, the current digital asset market is facing a dual test of geopolitical risks and shifts in monetary policy.

Against this backdrop, investors’ risk appetite has significantly declined, and capital flows are becoming more cautious. This may indicate that the digital asset market could continue to be under pressure and exhibit volatile trends in the short term.

#Investment Trends