According to CoinShares, institutional investors sold $101.5 million worth of digital asset products last week as they expected the Federal Reserve to adopt a hawkish monetary policy.
The U.S. inflation rate reached 8.6% year-on-year at the end of May, returning to levels not seen since 1981. As a result, markets expect the Fed to take significant action to curb inflation, with some traders predicting three more rate hikes of 0.5% each by October.
According to CoinShares’ latest weekly report on digital asset fund flows, the outflows between June 6 and June 10 were mainly from investors in the Americas, amounting to $98 million, while Europe accounted for only $2 million.
Products offering exposure to the top two assets in the crypto space — bitcoin and ethereum — accounted for nearly all of the outflows, at $56.8 million and $40.7 million, respectively. The data so far this month has also been grim, with outflows worth $91.1 million from BTC products and a total of $72.3 million from ETH products.
“What has pushed Bitcoin into a ‘crypto winter’ over the past 6 months can largely be explained as a direct result of increasingly hawkish rhetoric from the Federal Reserve.”
While CoinShares hinted that bitcoin has entered a crypto winter, inflows into bitcoin investment products have hit $450.8 million so far this year. In contrast, funds offering exposure to ethereum have seen massive outflows of $386.5 million so far this year, suggesting that institutional investors remain in favor of the digital gold.
The report also highlighted that as of last week, the total assets under management (AUM) of Ethereum funds had “fallen to $8.7 billion from a peak of $23 billion in November 2021.”
Notably, institutional investors appear to have dumped their BTC and ETH offerings ahead of the recent price crashes in both assets.
CoinGecko data shows that from June 6 to 10, BTC and ETH prices fell by 4.7% and 5.9%, respectively. But since June 11, BTC and ETH have plummeted around 25.7% and 33.2%, respectively.
In addition to the outflows of BTC and ETH, the outflow of multi-asset funds was US$4.7 million, and the outflow of Short Bitcoin products was US$200,000. Meanwhile, investors are also “avoiding accumulating altcoins.”
Fund Flows by Asset: CoinShares
Flutterwave expands its executive team with experienced hires from leading firms like Binance.US and PayPal, signalling ambitious global growth and a strategic shift in leadership.
YouQuanOur market analysts link this surge directly to the recent launch of the Kujira oracle in October and the introduction of the Kujira treasury in November 2023.
BrianSolana's SOL price holds strong above key support levels, hinting at a potential 20% rise amid bullish trends and resistance challenges.
YouQuanMatt Hougan, Bitwise Asset Management's Chief Investment Officer, reveals the company's proactive stance in the race for the first spot Bitcoin ETF. Despite regulatory uncertainties, Hougan asserts, "We're preparing as though there’s going to be a launch."
JoyArgentina, faces a pivotal juncture with the rejection of a BRICS alliance invitation, substantial Peso devaluation, and ambitious plans for dollarisation, raising uncertainties about the nation's economic future.
Hui XinA BATHING APE® (BAPE®), renowned for its streetwear, announced today a forthcoming collaboration with Bored Ape Yacht Club (BAYC). The joint venture, in association with NFT production studio Yuga Labs, heralds a convergence of fashion and blockchain technology.
JoyFor those unfamiliar with the term, the term "BONK" is an doge-associated meme, first attributed to the baseball wielding Doge.
BrianNvidia strengthens its foothold in Vietnam, investing and fostering partnerships to drive AI development, navigating challenges to emerge as a key player in technology advancement.
Hui XinRainbow, a cryptocurrency wallet, made headlines by launching its innovative rewards initiative termed "Rainbow Points." The system involves allocating points to Ethereum users based on their on-chain activities, including wallet balances and usage of decentralised apps and services.
JoyShakeeb Ahmed, a security engineer, pleads guilty to exploiting two Solana DeFi platforms in a landmark smart contract fraud case, agreeing to pay $5 million in restitution.
YouQuan