Crypto Products Experience $454M Outflows Amid Fed Rate Concerns

Last week, crypto exchange-traded products (ETPs) saw a withdrawal of $454 million as investors reacted to potential delays in US Federal Reserve rate cuts.

CoinShares data indicated that initial gains of around $1.5 billion were reversed due to investor caution.
Bitcoin ETPs faced significant withdrawals, with approximately $405 million pulled out. Bitcoin
Ethereum funds experienced outflows of about $116 million.
Multi-asset crypto products saw net redemptions of nearly $21 million.

Selective Inflows Show Pockets Of Interest

XRP funds attracted around $46 million in new investments.
Solana products gained approximately $33 million.
Total assets under management across global crypto ETPs remained near $182 billion, indicating ongoing interest despite the redemptions.

Regional Patterns Reveal US Outflows And Overseas Inflows

US-linked crypto investment products saw an outflow of roughly $569 million.
Germany, Canada, and Switzerland recorded inflows of $59 million, $25 million, and $21 million, respectively.

Analysts note that recent economic data led to reevaluation of the timing for monetary easing. While $454 million is notable, the overall AUM of $182 billion suggests resilience in the sector. Investors will closely monitor upcoming economic releases and Fed communications for further developments.