CoinShares: Hawkish FOMC Meeting Triggers $600M Outflows in Digital Asset Funds

Digital
asset
investment
products
faced
significant
outflows
totaling
$600
million,
marking
the
largest
outflow
since
March
22,
2024.
The
recent
hawkish
Federal
Open
Market
Committee
(FOMC)
meeting
is
cited
as
the
main
trigger
for
these
outflows,
according
to

CoinShares.

Bitcoin
Takes
the
Brunt

The
outflows
were
predominantly
concentrated
in
Bitcoin
(BTC),
which
saw
a
staggering
$621
million
exit.
This
bearish
sentiment
also
led
to
$1.8
million
in
inflows
into
short-Bitcoin
products,
indicating
that
some
investors
are
betting
on
further
price
declines.

Altcoins
See
Inflows

While
Bitcoin
bore
the
brunt
of
the
outflows,
a
variety
of
altcoins
experienced
inflows.
Ethereum
(ETH)
led
the
way
with
$13
million,
followed
by
LIDO
(LDO)
with
$2
million
and
XRP
(XRP)
with
$1
million.

Regional
Outflows

The
outflows
were
not
confined
to
the
United
States,
which
saw
$565
million
in
outflows.
Canada,
Switzerland,
and
Sweden
also
witnessed
outflows
of
$15
million,
$24
million,
and
$15
million
respectively.
Germany,
however,
bucked
the
trend
with
$17
million
in
inflows.

Impact
on
Assets
Under
Management

The
outflows,
coupled
with
a
recent
price
sell-off,
resulted
in
total
assets
under
management
(AuM)
falling
from
above
$100
billion
to
$94
billion
over
the
week.
Trading
volumes
also
remained
lower
at
$11
billion
for
the
week,
compared
to
the
$22
billion
weekly
average
this
year,
but
still
significantly
higher
than
the
$2
billion
weekly
average
last
year.
Digital
asset
exchange-traded
products
(ETPs)
continue
to
hold
a
steady
31%
of
global
trading
volumes
on
trusted
exchanges.

Image
source:
Shutterstock