In the wake of a more hawkish-than-anticipated FOMC meeting, investors have reduced their exposure to fixed-supply assets, leading to $600 million outflows from digital asset investment products, the largest since March 2024. The bearish sentiment was also reflected in the decrease in total assets under management (AuM), which fell from over $100 billion to $94 billion this week.

Bitcoin bore the brunt of the outflows, with $621 million in withdrawals, while Ethereum-based investment products and altcoins such as LIDO and XRP saw inflows of $13.1 million, $2 million, and $1.1 million respectively. Despite the bearish sentiment, digital asset exchange-traded products (ETPs) maintained a steady 31% share of global trading volumes on trusted exchanges.

Regionally, the US recorded the highest outflows of $165 million, followed by Switzerland, Canada, and Sweden. However, Germany, Australia, and Brazil bucked the trend with inflows of $17.4 million, $1.7 million, and $0.7 million respectively. Despite the current market turbulence, the overall outlook remains optimistic, with trading volumes still higher than the previous year.