- The entire outflow from crypto asset investment products was $6.5 million.
- Investors prepare for a big policy decision from the Federal Reserve on July 26.
According to a report by CoinShares, crypto asset investment products saw outflows for the first time in five weeks, after four weeks of inflows from institutions totaling $742 million. The entire outflow from crypto asset investment products was $6.5 million. As investors sell off their Bitcoin holdings, they wonder whether the institutional purchasing has ended.
🔎 Let’s have a look at last week’s fund flows with CoinShare’s Head of Research James Butterfill.
⬅️ Digital asset investment products saw minor outflows totalling US$6.5m, following 4 prior weeks of inflows that totalled US$742m.
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— CoinShares (@CoinSharesCo) July 24, 2023
The previous four weeks witnessed a cumulative influx of $742 million into cryptocurrency asset funds. Even though flows had been negative for nine weeks prior to the inflows, the year-to-date total is now positive. Bitcoin saw massive inflows as BlackRock, Fidelity Investments, and other financial heavyweights filed for spot Bitcoin ETFs.
All Eyes on Policy Update
However, last week’s $6.5 million in crypto asset withdrawals sparked fears of a market downturn. Investors dumped $13 million worth of Bitcoin and bought $6.6 million worth of Ethereum. In addition, $5.5 million has flowed out of short Bitcoin investment products. The outflows have been for the thirteenth week in a row. Moreover, following Ethereum’s lead, XRP saw the most influx thanks to Ripple’s partial victory over the US SEC.
The cryptocurrency market as a whole saw a selloff that resulted in the loss of over $90 million in an hour and $150 million in the preceding 24 hours. As investors prepare for a big policy decision from the Federal Reserve the price of bitcoin dropped precipitously to start the week. On Wednesday, after a two-day meeting, the Federal Reserve will announce its decision, and investors will be waiting to see what happens next.
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Source: https://thenewscrypto.com/bitcoin-news-crypto-asset-funds-experience-outflows-ahead-of-fed-meeting/