Fed Rate Uncertainty Triggers Crypto Fund Outflows

From September 29 to October 5, cryptocurrency investment funds experienced outflows totaling $147 million, following an inflow of $1.29 billion the previous week, according to CoinShares.

This negative trend emerged after three weeks of inflows.

Experts noted that stronger-than-expected macroeconomic data reduced the likelihood of significant monetary policy easing, leading to deteriorating investor sentiment.

Trading volume for ETP increased by approximately 15%, reaching $10 billion.

Clients withdrew $159 million from bitcoin-related instruments after an inflow of $1.07 billion the previous week.

Investors added $2.8 million to structures allowing short positions on digital gold (compared to $8.8 million in the previous reporting period).

Ethereum funds saw renewed outflows of $29 million following inflows of $87 million the week before.

Clients increased their positions in Solana-based instruments by $5.3 million and in Litecoin-based ones by $0.9 million.

Altcoin-based products attracted $29.4 million.

BTC-ETF

From September 30 to October 4, investors withdrew $301.5 million from spot bitcoin ETFs, according to SoSoValue. This negative trend followed three weeks of inflows.

The main contributors to the outflows were:

• GBTC by Grayscale — $47.1 million;
• ARKB by ARK Invest and 21Shares — $206.8 million;
• FBTC by Fidelity — $138.9 million;
• HODL by VanEck — $10.5 million.

Investors directed $135.2 million into IBIT by BlackRock.

Cumulative inflows since the approval of BTC-ETF in January have decreased to $18.5 billion.

In September, spot exchange-traded funds based on the first cryptocurrency shifted from a net sale of 5,000 BTC to the largest purchase since July of 7,000 BTC, according to CryptoQuant.

Earlier, Glassnode noted the resilience of bitcoin product holders amid market corrections.

Back in January, The Bank of New York Mellon, with AUM of $50 trillion, announced plans to enter the crypto-ETF custody services market.