CoinShares reports $434M crypto fund outflows after hot U.S. CPI

Global digital asset investment products have recorded $434 million in outflows so far this week as higher U.S. inflation and stronger consumer spending have raised expectations of further Federal Reserve interest rate increases. Summary CoinShares reported $434 million in digital asset investment product outflows this week amid inflation concerns. U.S. September inflation reached 3.7% annually, exceeding the 3.6% forecast and raising interest rate concerns. September retail sales climbed 0.8%, beating the expected 0.3% as gasoline prices pushed spending higher. Polymarket placed October’s Federal Reserve rate pause probability at 75%, with 25% favoring another hike. CoinShares described Bitcoin’s outlook as difficult, citing elevated inflation and uncertainty surrounding future interest rates. In its October 16 market update, CoinShares attributed the withdrawals to changing interest rate expectations following September’s consumer inflation report and retail sales figures. Annual inflation reached 3.7%, exceeding the 3.6% forecast, while retail sales grew 0.8% against expectations of 0.3%. The asset manager described Bitcoin’s current market conditions as difficult without treati...