{"id":21207,"date":"2022-06-28T03:09:40","date_gmt":"2022-06-28T03:09:40","guid":{"rendered":"http:\/\/egrowonline.com\/?p=21207"},"modified":"2022-06-28T03:09:40","modified_gmt":"2022-06-28T03:09:40","slug":"almost-100m-exits-us-crypto-funds-in-anticipation-of-hawkish-monetary-policy","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=21207","title":{"rendered":"Almost $100M exits US crypto funds in anticipation of hawkish monetary policy"},"content":{"rendered":"


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Institutional investors offloaded $101.5 million worth of digital asset products last week in \u201canticipation of hawkish monetary policy\u201d from the United States Federal Reserve, according to CoinShares.<\/p>\n

U.S. inflation rates hit 8.6% year-on-year at the end of May, marking a return to levels not seen since 1981. As a result, the market is expecting the Fed to take considerable action to reel in inflation, with some traders pricing in three more 0.5% rate hikes<\/a> by October. <\/p>\n

According<\/a> to the latest edition of CoinShares\u2019 weekly \u201cDigital Asset Fund Flows\u201d report, the outflows between June 6 and June 10 were primarily led by investors from the Americas at $98 million, while Europe accounted for just $2 million. <\/p>\n

Products offering exposure to crypto\u2019s top two assets, Bitcoin (BTC<\/a>) and Ether (ETH<\/a>), accounted for nearly all outflows at $56.8 million and $40.7 million a piece. The month-to-date figures also paint a grim figure at $91.1 million worth of outflows for BTC products and $72.3 million in total outflows for ETH products:<\/p>\n

\u201cWhat has pushed Bitcoin into a \u2018crypto winter\u2019 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.\u201d<\/p><\/blockquote>\n

While CoinShares suggested that Bitcoin has been\u00a0pushed into a crypto winter<\/a>, the year-to-date (YTD) inflows for BTC investment products still stand at $450.8 million. In comparison, funds offering exposure to ETH have seen hefty year-to-date outflows of $386.5 million, suggesting the sentiment amongst institutional investors still heavily favors digital gold. <\/p>\n

The report also highlighted that the total assets under management (AUM) for Ether funds have \u201cfallen from its peak of US$23bn in November 2021 to US$8.7bn\u201d as of last week. <\/p>\n

Notably, it appears that the institutional investors offloaded their BTC and ETH products before most of the latest price carnage<\/a> happened to both assets.<\/p>\n

Related: <\/em><\/strong>Bitcoin price drops to lowest since May as Ethereum market trades at 18.4% loss<\/em><\/strong><\/a><\/p>\n

According to data from CoinGecko, between June 6 and June 10, the price of BTC and ETH dropped 4.7% and 5.9% each. However, since June 11, BTC and ETH have plunged around 25.7% and 33.2%, respectively. <\/p>\n

Apart from BTC and ETH outflows, multi-asset funds saw outflows of $4.7 million, and short Bitcoin products posted minimal outflows of $200,000. At the same time, investors also \u201csteered clear of adding to altcoin positions.\u201d<\/p>\n

Flows by Asset: CoinShares<\/em><\/figcaption><\/figure>\n<\/div>\n


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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Institutional investors offloaded $101.5 million worth of digital asset products last week in \u201canticipation of hawkish monetary policy\u201d from the United States Federal Reserve, according to CoinShares. U.S. inflation rates hit 8.6% year-on-year at the end of May, marking a return to levels not seen since 1981. As a result, the market is expecting the […]<\/p>\n","protected":false},"author":1,"featured_media":21208,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[41],"tags":[1413,9331,62,9330,1351,4257,8503,1243],"class_list":["post-21207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-100m","tag-anticipation","tag-crypto","tag-exits","tag-funds","tag-hawkish","tag-monetary","tag-policy"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/06\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvNzA2YjE5OWEtODhiZS00NmE4LThhNDktOTE1YjNmZjhmYTcyLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21207"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21207\/revisions"}],"predecessor-version":[{"id":21209,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/21207\/revisions\/21209"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/21208"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21207"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}