End of Institutional Crypto Buying Spree: CoinShares Reports Significant Outflows
After a 19-week buying spree post-US election, institutional crypto investors have finally pulled out of the market, according to international digital asset management firm CoinShares.
CoinShares revealed that over $415 million was withdrawn from crypto products last week, marking the end of nearly 20 weeks of continuous inflows.
CoinShares suggested that the hawkish stance taken by the Federal Reserve might have triggered the sudden outflows.
According to CoinShares, “Digital asset investment products saw their first significant outflows, totaling $415m, following an unprecedented 19-week post-US election inflow streak that amassed $29.4bn — far surpassing the $16bn recorded in the first 19 weeks of US spot ETF (exchange-traded fund) launches that began in January 2024.”
The report highlighted that the United States led the outflows with $464 million, while foreign markets showed minimal reaction to the Fed’s hawkish stance.
Germany, Switzerland, and Canada, on the other hand, witnessed inflows of $21 million, $12.5 million, and $10.2 million, respectively.
Bitcoin (BTC) experienced the highest outflows amounting to $430 million, while altcoins like Solana (SOL), XRP, and Sui (SUI) saw inflows of $8.9 million, $85 million, and $6 million, respectively.
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