Crypto Market Sees $795M Outflow
$795 Million Exodus from Crypto Funds Amidst Uncertainty
Last week witnessed a significant $795 million outflow from cryptocurrency investment products, marking the third consecutive week of sell-offs. This downturn, according to CoinShares' weekly report, is largely attributed to concerns surrounding tariffs and the Federal Reserve's actions.
- Bitcoin (BTC) experienced the most substantial outflows, totaling $751 million.
- Ethereum (ETH) also saw outflows, amounting to $37.6 million.
- Surprisingly, XRP and multi-asset funds showed modest inflows, bucking the overall trend.
BlackRock and Grayscale Experience Significant Outflows
BlackRock's iShares ETFs recorded the highest withdrawals, with a combined $342 million outflow from BTC and ETH ETFs. Month-to-date, BlackRock's outflows reached $412 million, a significant amount over the past two weeks. Grayscale products followed with $187 million in outflows.
Solana-based products saw $5.1 million in sell-offs, placing them third in terms of outflows after ETH.
XRP and Multi-Asset Funds Outperform
In contrast to the widespread sell-off, XRP-based and multi-asset funds demonstrated resilience. XRP saw $3.4 million in inflows last week, and month-to-date flows stood at $1.5 million. This suggests investors favored diversified strategies and XRP over individual assets like BTC and ETH.
This trend is further supported by record inflows into the new 2x Teucrium XRP ETF.
Macroeconomic Factors Contribute to Uncertainty
Analysts predict the decline may continue. Quinn Thompson of Lekker Capital points to a recent speech by Fed Chair Jerome Powell as a potential negative factor for risk assets, including crypto, in May. The perceived preference for patience by the Fed amidst uncertainty is viewed as positive for bonds but negative for riskier investments.
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