Crypto ETFs experience heavy outflows after FOMC meeting

Crypto ETFs experienced heavy outflows totaling $621 million in the past week, potentially spurred by the Federal Reserve (Fed) keeping interest rates steady, according to the CoinShares weekly digital asset report on Monday.

Bitcoin ETFs experience heavy outflows for first time since May

Digital asset ETFs experienced their highest outflows since March in the past week, according to the report. The surprise outflows were possibly a result of "a more hawkish-than-expected FOMC meeting, prompting investors to scale back their exposure to fixed supply assets."

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The combined weekly outflows amounted to $621 million, significantly affecting Bitcoin ETFs. The downturn in digital asset ETF inflows put an end to a five-week consistent inflow that had been observed since May, particularly among US Bitcoin ETFs, which saw about $565 million in outflows.

Grayscale and Arkham experienced the highest declines with $273 million and $150 million in outflows, respectively. Fidelity ETFs were not far behind with $146 million in outflows.

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Amid the huge outflows from Bitcoin ETFs, Ethereum, Lido, and XRP ETFs all saw inflows in the past week.

The Fed's decision to keep interest rates between 5.25% and 5.50% at last week’s meeting largely sparked losses among top crypto assets, with Bitcoin and Ethereum starting the week with over 1% declines following CoinShares' report.

Bitcoin struggled to surpass the $66K mark over the weekend after hitting its highest low on Friday, trading at $65.1K. The largest digital asset resumed Monday with a 1% drawback but has climbed to $66.8K in the past few hours.

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ETH and SOL also began the week with declines of 1% and 2%, respectively. XRP is the only token in the top 10 that is trading in the green, with a rise of nearly 6% in the past 24 hours.