Digital Asset Funds See $454M Weekly Outflows as Fed Rate-Cut Hopes Fade
Digital asset investment products recorded $454 million in net outflows last week, extending a sharp reversal in investor sentiment that has largely erased gains made at the start of the year. The pullback follows a four-day streak of outflows totaling $1.3 billion, nearly wiping out the $1.5 billion of inflows recorded during the first two trading days of 2026.
The abrupt shift appears closely tied to cooling expectations of a US Federal Reserve interest rate cut in March. Recent macroeconomic data suggests inflation may remain more persistent than markets had anticipated, prompting risk-off behavior across digital asset investment products.
Regionally, the United States accounted for the vast majority of last week’s outflows, with US-listed products seeing $569 million withdrawn. This contrasts sharply with early-year Optimism that had been underpinned by hopes of Fed easing.
