Investors flee crypto funds in largest exodus since March - CoinShares
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INVESTORS FLEE CRYPTO FUNDS IN LARGEST EXODUS SINCE MARCH - COINSHARES
Investors pulled money from funds tracking digital assets last week, CoinShares data showed, with outflows the biggest since March.
Outflows from those products were at $72 million in the week ending September 7, according to a Coinshares note, the second consecutive week of outflows.
Bets on bitcoin's decline also increased, with short-bitcoin products seeing inflows of $3.9 million after $4.4 million the week prior.
"Negative sentiment was driven by stronger-than-expected macroeconomic data from the previous week, which increased the likelihood of a 25 basis point interest rate cut by the Federal Reserve," CoinShares analysts said.
However, they noted outflows slowed slightly after employment data last week kept the possibility of a 50 basis point rate cut in play.
Bitcoin BTC= like most risk-on assets, has been at the mercy of expectations for the U.S. economy and Federal Reserve rate cuts over the past few months.
The largest digital asset slumped 8.7% in August and has lost 3.4% so far in September, though a steeper-than-anticipated rate cut next week could inject some optimism back into crypto markets.
"Although September is historically a negative month for BTC, the combination of a Fed rate cut and a relatively robust US economy could surprise the bears," said Edouard Hindi, Chief Investment Officer at Tyr Capital.
BlackRock's ETF tracking spot bitcoin performance IBIT.O has gained about 17% year-to-date through Monday's close, still outperforming the S&P 500's 15% rise.
Ethereum funds saw outflows of nearly $100 million, with analysts noting inflows into new spot-ETFs tracking the currency ETH= have all but "dried up."
Altcoin solana SOL=CCCL saw inflows of $6.2 million, CoinShares reported.
(Lisa Mattackal)
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