Institutional Investors End Crypto Buying Spree After U.S. Election

Institutional investors have ended their 19-week crypto buying spree following the U.S. election, with a significant pullback of $415 million in crypto products last week, according to digital asset management firm CoinShares. This marks the first substantial outflow since the post-election inflow streak began, which amassed $29.4 billion, surpassing the $16 billion recorded in the first 19 weeks of U.S. spot ETF launches.

CoinShares suggests that a hawkish stance from the Federal Reserve, coupled with unexpected inflation data, may have triggered the sudden outflow. The United States led the outflows, with a total of $464 million, while foreign markets remained relatively unaffected, supporting CoinShares' theory.

Bitcoin (BTC) bore the brunt of investor skittishness, with $430 million in outflows. Meanwhile, altcoins such as Solana (SOL), XRP, and Sui (SUI) experienced inflows of $8.9 million, $85 million, and $6 million, respectively. Germany, Switzerland, and Canada took inflows of $21 million, $12.5 million, and $10.2 million, respectively.