US Crypto Funds Exits $100 Million In Anticipation Of Fed Action
What has pushed Bitcoin into the “crypto winter” over the past six months can be explained as a direct result of increasingly hawkish rhetoric from the United States Federal Reserve (Fed). Institutional investors sold off $101.5 million worth of digital asset products last week in anticipation of “hawkish monetary policy” from the Fed.
The US inflation rate hit 8.6% year-on-year at the end of May, marking a return to levels not seen since 1981. As a result, markets are expecting the Fed to take significant action to control inflation.
According to the latest edition of CoinShares Digital Asset Fund Flows Weekly Report, outflows from June 6 to June 10 were mainly led by investors from the Americas with $98 million, while Europe only accounted for $2 million.
Products that provide exposure to the top two crypto-assets, Bitcoin (BTC) and Ethereum (ETH), account for nearly all outflows at $56.8 million and $40.7 million respectively corresponding. The figures to date also show a staggering $91.1 million in outflows for BTC products and $72.3 million in total outflows for ETH products.
“What has pushed Bitcoin into a ‘crypto winter’ over the last six months can by and large be explained as a direct result of an increasingly hawkish rhetoric from the US Federal Reserve.”
While CoinShares thinks Bitcoin has been pushed into crypto winter, year-to-date (YTD) inflows for BTC investment products have remained at $450.8 million. Meanwhile, funds that offer ETH exposure have seen massive outflows year-to-date at $386.5 million, showing that institutional investor sentiment remains in favor of digital gold.
The report also highlights that total assets under management (AUM) for Ether funds have “fallen from a peak of US$23 billion in November 2021 to US$8.7 billion” last week.
Notably, it appears that institutional investors sold off their BTC and ETH products before the latest price carnage hit both assets.
According to data from CoinGecko, from June 6 to June 10, BTC and ETH prices fell 4.7% and 5.9% each. However, since June 11, BTC and ETH have dropped by around 25.7% and 33.2%, respectively.
In addition to BTC and ETH inflows, multi-asset funds have seen outflows of $4.7 million and short Bitcoin products have seen outflows of $200,000. At the same time, crypto investors also “stay away from adding to altcoin positions.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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US Crypto Funds Exits $100 Million In Anticipation Of Fed Action
What has pushed Bitcoin into the “crypto winter” over the past six months can be explained as a direct result of increasingly hawkish rhetoric from the United States Federal Reserve (Fed). Institutional investors sold off $101.5 million worth of digital asset products last week in anticipation of “hawkish monetary policy” from the Fed.
The US inflation rate hit 8.6% year-on-year at the end of May, marking a return to levels not seen since 1981. As a result, markets are expecting the Fed to take significant action to control inflation.
According to the latest edition of CoinShares Digital Asset Fund Flows Weekly Report, outflows from June 6 to June 10 were mainly led by investors from the Americas with $98 million, while Europe only accounted for $2 million.
Products that provide exposure to the top two crypto-assets, Bitcoin (BTC) and Ethereum (ETH), account for nearly all outflows at $56.8 million and $40.7 million respectively corresponding. The figures to date also show a staggering $91.1 million in outflows for BTC products and $72.3 million in total outflows for ETH products.
“What has pushed Bitcoin into a ‘crypto winter’ over the last six months can by and large be explained as a direct result of an increasingly hawkish rhetoric from the US Federal Reserve.”
While CoinShares thinks Bitcoin has been pushed into crypto winter, year-to-date (YTD) inflows for BTC investment products have remained at $450.8 million. Meanwhile, funds that offer ETH exposure have seen massive outflows year-to-date at $386.5 million, showing that institutional investor sentiment remains in favor of digital gold.
The report also highlights that total assets under management (AUM) for Ether funds have “fallen from a peak of US$23 billion in November 2021 to US$8.7 billion” last week.
Notably, it appears that institutional investors sold off their BTC and ETH products before the latest price carnage hit both assets.
According to data from CoinGecko, from June 6 to June 10, BTC and ETH prices fell 4.7% and 5.9% each. However, since June 11, BTC and ETH have dropped by around 25.7% and 33.2%, respectively.
In addition to BTC and ETH inflows, multi-asset funds have seen outflows of $4.7 million and short Bitcoin products have seen outflows of $200,000. At the same time, crypto investors also “stay away from adding to altcoin positions.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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