CoinShares’ latest weekly report revealed a significant shift in crypto investment products, with the sector seeing its largest outflows in three months. Investors withdrew $600 million from the market last week, with Bitcoin products facing the most substantial outflows at $621 million. In contrast, short-Bitcoin products experienced nearly $2 million in inflows, reflecting bearish sentiment.

James Butterfill, CoinShares’ head of research, attributed these changes to a “more hawkish-than-expected FOMC meeting.” The US Federal Reserve’s Federal Open Market Committee decided to maintain the current interest rate, which experts suggested implies only one possible rate cut this year. Butterfill explained that this decision has led investors to reduce their exposure to fixed-supply assets like Bitcoin, causing total assets under management (AuM) to drop from over $100 billion to $94 billion over the week.

The bearish trend in the US also impacted other countries. Canada, Switzerland, and Sweden saw outflows of $15 million, $24 million, and $15 million, respectively. In contrast, Australia, Brazil, and Germany experienced modest inflows of $1.7 million, $700,000, and $17.4 million, respectively.

The trading volume for crypto ETPs was $11 billion last week, significantly lower than the $22 billion weekly average. Despite this decrease, these products accounted for 31% of all trading volumes on major exchanges.

Despite the bearish trend for Bitcoin, most altcoins had a positive week, attracting significant funds. Ethereum continued its upward trajectory with an additional $13.1 million in inflows, bringing its month-to-date total to $82 million. This increase is attributed to the anticipated launch of spot Ethereum exchange-traded fund (ETF) products in the US, which experts believe will enhance market accessibility. Other altcoins like Cardano and Lido attracted over $1 million, while assets like Litecoin and Chainlink saw modest inflows.