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$600,000,000 Leaves Crypto ETPs Following More-Hawkish-Than-Expected FOMC Meeting: CoinShares

dailyhodl.com 17 June 2024 22:13, UTC

Digital assets manager CoinShares says crypto products bled out last week to the tune of $600 million.

In its latest Digital Asset Fund Flows report, CoinShares says that institutional investors are likely reacting to a more “hawkish-than-expected” Federal Open Market Committee (FOMC) meeting last week.

“Digital asset investment products experienced outflows totaling US$600 million, the largest since March 22, 2024. This occurred under similar circumstances: a period of significant inflows followed by a more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed-supply assets.”

According to CoinShares, the FOMC’s dot plot is the likely cause of the crypto losses. The dot plot records each member of the committee’s personal opinion on the appropriate interest rate for the central bank at a given time period. According to the FOMC’s most recent dot plot, most of the committee doesn’t see interest rates lowering before next year.

The US region saw massive outflows of $565 million, with Canada, Switzerland and Sweden piling on $15 million, $24 million and $15 million in outflows, respectively. Meanwhile, Germany brought in $17 million in inflows.

Bitcoin (BTC) saw the heaviest outflows at $621 million as Solana (SOL) lost $0.2 million. Ethereum (ETH), Chainlink (LINK) and Litecoin (LTC) saw inflows of $13.1 million, $0.8 million and $0.8 million, respectively.

Generated Image: Midjourney

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