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.