Digital asset investment products recorded significant weekly outflows of about $528 million, breaking a month-long streak of inflows, according to CoinShares’ Digital Asset Fund Flows report. CoinShares links the reversal to growing US recession fears, a broader risk-off mood and a sharp move lower in Bitcoin, even as some altcoins and certain regions still saw modest inflows. CoinShares reports that in the week to early August, institutional-grade crypto products turned negative after four consecutive weeks of net inflows, with total assets under management also declining as prices fell. Bitcoin products accounted for the bulk of the redemptions, coinciding with Bitcoin dropping below key price levels, while Ethereum and several other large-cap assets also saw outflows. Analysts at CoinShares attribute the move to macroeconomic concerns, notably the rising probability of a US recession and its impact on risk assets, which drove investors to de-risk from higher-volatility exposures like crypto ETPs. Despite the headline outflows, CoinShares notes that flows were not uniformly negative across all instruments and regions. Some altcoin-focused products and certain jurisdictions recorded net inflows, suggesting that while sentiment turned cautious at the aggregate level, there remains selective institutional interest and rotation within the digital asset space. The episode highlights how macroeconomic narratives—especially recession risk and interest rate expectations—continue to exert strong influence over institutional crypto allocations and the short-term direction of listed digital asset products.

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