Crypto Funds Hit With Record Outflows, But Altcoin Buyers Smell Opportunity.

Crypto asset investment products experienced another challenging week as capital outflows continued for a second consecutive period. According to the latest report from CoinShares, a total of $584 million exited crypto-focused investment vehicles, pushing the two-week cumulative outflows to $1.2 billion.

This movement coincides with investor uncertainty surrounding the likelihood of interest rate cuts by the US Federal Reserve this year, which James Butterfill, Head of Research at CoinShares, believes is contributing to waning sentiment in the market.

Butterfill attributed the investor pullback to growing skepticism about macroeconomic policy shifts, particularly rate reductions. At the same time, exchange-traded product (ETP) activity hit a new low, with global ETP volumes falling to just $6.9 billion, marking the weakest weekly trading volume since the launch of spot Bitcoin ETFs in the United States earlier this year.